Process X is estimated to have a fixed cost of $32,500 per year and a varlable cost of $60 per unit in year 1, decreasing by $5 per unit per year thereafter. Process Y will have a fixed cost of $69,000 per year and a varlable cost of $10 per unit in year 1, increasing by $1 per unit per year thereafter. At an interest rate of 12% per year, how many units must be produced in year 7 for the two processes to break even? The number of units that must be produced is determined to be 1065

Process X is estimated to have a fixed cost of $32,500 per year and a varlable cost of $60 per unit in year 1, decreasing by $5 per unit per year thereafter. Process Y will have a fixed cost of $69,000 per year and a varlable cost of $10 per unit in year 1, increasing by $1 per unit per year thereafter. At an interest rate of 12% per year, how many units must be produced in year 7 for the two processes to break even? The number of units that must be produced is determined to be 1065

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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