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what is the first price the company setts the pen lo have marginally profitable? Knowing that

what is the first price the company setts the pen lo have marginally profitable? Knowing that

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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[CLO-61 A company is producing pen for 5 years, the investment value for the company is $700,000, the market value for the company is $10,000, while the annual expenses is $100,000. Monthly tax to be peid 2% from the investment. The company find itself increase the price of the pen each year 50% than previous yoar with regular production demand 100,000 (product/yoer). Based on P method what is the first price the company setts the pen lo have marginally profitable? Knowing that MARR = 12% compounded yearly
Transcribed Image Text:[CLO-61 A company is producing pen for 5 years, the investment value for the company is $700,000, the market value for the company is $10,000, while the annual expenses is $100,000. Monthly tax to be peid 2% from the investment. The company find itself increase the price of the pen each year 50% than previous yoar with regular production demand 100,000 (product/yoer). Based on P method what is the first price the company setts the pen lo have marginally profitable? Knowing that MARR = 12% compounded yearly
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