Cecil's Manufacturing is considering producing a new product. The sales price would be $9.75 per unit. The cost of the equipment is $116,000. Operating and maintenance costs are expected to be $4,100 annually. Based on a 7-year planning horizon and a MARR of 12%, determine the number of units that must be sold annually to achieve breakeven. units Carry all interim calculations to 5 decimal places and then round your final answer up to the nearest unit. The tolerance is ‡5.
Cecil's Manufacturing is considering producing a new product. The sales price would be $9.75 per unit. The cost of the equipment is $116,000. Operating and maintenance costs are expected to be $4,100 annually. Based on a 7-year planning horizon and a MARR of 12%, determine the number of units that must be sold annually to achieve breakeven. units Carry all interim calculations to 5 decimal places and then round your final answer up to the nearest unit. The tolerance is ‡5.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Cecil's Manufacturing is considering producing a new product. The sales price would be $9.75 per unit. The cost of the equipment is $116,000. Operating and maintenance costs are expected to be $4,100 annually. Based on a 7-year planning horizon and a MARR of 12%, determine the number of units that must be sold annually to achieve breakeven. units Carry all interim calculations to 5 decimal places and then round your final answer up to the nearest unit. The tolerance is ‡5.
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