PT POQ Indonesia plans to produce a new product that requires an initial investment of IDR 150 million and operational and maintenance costs of IDR 35000 per hour. In addition, the company must pay other costs of Rp. 75 million per year. Based on the time standard obtained from the study of work procedures and measurement techniques, it can be estimated that it takes 150 hours to produce 1000 units of product. Furthermore, it is also estimated that the price per unit of product is Rp. 15000 and the investment is for 10 years with a salvage value of zero. With a MARR of 20%, calculat
PT POQ Indonesia plans to produce a new product that requires an initial investment of IDR 150 million and operational and maintenance costs of IDR 35000 per hour. In addition, the company must pay other costs of Rp. 75 million per year. Based on the time standard obtained from the study of work procedures and measurement techniques, it can be estimated that it takes 150 hours to produce 1000 units of product. Furthermore, it is also estimated that the price per unit of product is Rp. 15000 and the investment is for 10 years with a salvage value of zero. With a MARR of 20%, calculat
Chapter1: Making Economics Decisions
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PT POQ Indonesia plans to produce a new product that requires an initial investment of IDR 150 million and operational and maintenance costs of IDR 35000 per hour.
In addition, the company must pay other costs of Rp. 75 million per year.
Based on the time standard obtained from the study of work procedures and measurement techniques, it can be estimated that it takes 150 hours to produce 1000 units of product.
Furthermore, it is also estimated that the price per unit of product is Rp. 15000 and the investment is for 10 years with a salvage value of zero.
With a MARR of 20%, calculate how many units must be produced for the firm to break even.
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