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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1h

[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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