Answered: and what will be the cost per unit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company manufactures iron cutting machines. The investment amount made for the machine is 800 thousand TL. Energy costs will increase by 50 thousand and 6% each year. Personnel expenses will increase by 35 thousand and 15 thousand each year, on the other hand, financial expenses will increase by 100 thousand TL and 20% each year. Since it is planned that 250 machines will be manufactured annually, the company has to charge a total cost of TL to the machines manufactured each year for this production with a 12-year life and 30% capital cost, and what will be the cost per unit.

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