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If the cost of purchasing all unit operations (equipment) necessary to a certain factory is 300000$ F.O.B. and the cost of installing and shipping are 45000$. When the factory operates, if the cost to produce one unit of the product will be 500$ for the raw materials and 300$ for labor, the selling price per one unit is 1000$, find the a) Break even point. b) net profit or loss at a production capacity of 1000 unit per year if the taxes were 20%.

If the cost of purchasing all unit operations (equipment) necessary to a certain factory is 300000$ F.O.B. and the cost of installing and shipping are 45000$. When the factory operates, if the cost to produce one unit of the product will be 500$ for the raw materials and 300$ for labor, the selling price per one unit is 1000$, find the a) Break even point. b) net profit or loss at a production capacity of 1000 unit per year if the taxes were 20%.

Introduction to Chemical Engineering Thermodynamics
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
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If the cost of purchasing all unit operations (equipment) necessary to a certain factory is 300000$ F.O.B. and the cost of installing and shipping are 45000$. When the factory operates, if the cost to produce one unit of the product will be 500$ for the raw materials and 300$ for labor, the selling price per one unit is 1000$, find the a) Break even point. b) net profit or loss at a production capacity of 1000 unit per year if the taxes were 20%.
Transcribed Image Text:If the cost of purchasing all unit operations (equipment) necessary to a certain factory is 300000$ F.O.B. and the cost of installing and shipping are 45000$. When the factory operates, if the cost to produce one unit of the product will be 500$ for the raw materials and 300$ for labor, the selling price per one unit is 1000$, find the a) Break even point. b) net profit or loss at a production capacity of 1000 unit per year if the taxes were 20%.
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