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Block Corporation is considering a project that would require an investment of $279,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows: Sales Variable expenses Contribution margin Fixed expenses: Salaries Rents Depreciation Total fixed expenses 224,000 22,000 202,000 25,000 38,000 33,000 96,000 106,000 Net operating income • Note - when calculating annual revenue, we don't consider costs that change based on the number of items produced.

Block Corporation is considering a project that would require an investment of $279,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows: Sales Variable expenses Contribution margin Fixed expenses: Salaries Rents Depreciation Total fixed expenses 224,000 22,000 202,000 25,000 38,000 33,000 96,000 106,000 Net operating income • Note - when calculating annual revenue, we don't consider costs that change based on the number of items produced.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 3 Block Corporation is considering a project that would require an investment of $279,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows: Sales Variable expenses Contribution margin Fixed expenses: Salaries Rents 224,000 22,000 202,000 25,000 38,000 33,000 96,000 106,000 Depreciation Total fixed expenses Net operating income • Note - when calculating annual revenue, we don't consider costs that change based on the number of items produced.
Transcribed Image Text:Question 3 Block Corporation is considering a project that would require an investment of $279,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows: Sales Variable expenses Contribution margin Fixed expenses: Salaries Rents 224,000 22,000 202,000 25,000 38,000 33,000 96,000 106,000 Depreciation Total fixed expenses Net operating income • Note - when calculating annual revenue, we don't consider costs that change based on the number of items produced.
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