The break-even point occurs when the sales amounted to (123 * 103) dinars. While in normal cases it is (189 * 10) dinars. The cost of the factory was (502 * 103) dinars, which is destroyed over a period of (15) years, by way of a paradoxical equilibrium. Another product was added with a value of (205 ** 10) dinars to be recovered over 5 years. The ratio of profit to volume will increase by (7.3%) annually, while income from sales will increase by (18%). What profit will the company achieve as a result of adding the new product?
The break-even point occurs when the sales amounted to (123 * 103) dinars. While in normal cases it is (189 * 10) dinars. The cost of the factory was (502 * 103) dinars, which is destroyed over a period of (15) years, by way of a paradoxical equilibrium. Another product was added with a value of (205 ** 10) dinars to be recovered over 5 years. The ratio of profit to volume will increase by (7.3%) annually, while income from sales will increase by (18%). What profit will the company achieve as a result of adding the new product?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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5. The break-even point occurs when the sales amounted to (123 * 103) dinars. While in normal cases it is (189 * 10) dinars. The cost of the factory was (502 * 103) dinars, which is destroyed over a period of (15) years, by way of a paradoxical equilibrium. Another product was added with a value of (205 ** 10) dinars to be recovered over 5 years. The ratio of profit to volume will increase by (7.3%) annually, while income from sales will increase by (18%). What profit will the company achieve as a result of adding the new product?
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