Required information A process for producing the mosquito repellant Deet has an initial investment of $175,000 with annual costs of $45,000. Income is expected to be $90,000 per year. What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon? (Consider the rounded values of years calculated in part a. Also, round your answer to the nearest integer.) When /= 0%, the annual breakeven production quantity is determined to be When /= 12%, the annual breakeven production quantity is determined to be gallons per year. gallons per year.

Required information A process for producing the mosquito repellant Deet has an initial investment of $175,000 with annual costs of $45,000. Income is expected to be $90,000 per year. What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon? (Consider the rounded values of years calculated in part a. Also, round your answer to the nearest integer.) When /= 0%, the annual breakeven production quantity is determined to be When /= 12%, the annual breakeven production quantity is determined to be gallons per year. gallons per year.

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

Required information
A process for producing the mosquito repellant Deet has an initial investment of $175,000 with annual costs of $45,000.
Income is expected to be $90,000 per year.
What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon?
(Consider the rounded values of years calculated in part a. Also, round your answer to the nearest integer.)
When /= 0%, the annual breakeven production quantity is determined to be
When i=12%, the annual breakeven production quantity is determined to be
gallons per year.
gallons per year.

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