Your dad recently decided to set up a coconut oil factory given the global demand. In order to guarantee profitability and his ability to stay in business. He has asked you to help in the decision-making. Given an estimated fixed cost of setting up of Gh¢2m and
Your dad recently decided to set up a coconut oil factory given the global demand. In order to guarantee profitability and his ability to stay in business. He has asked you to help in the decision-making. Given an estimated fixed cost of setting up of Gh¢2m and
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
![Your dad recently decided
to set up a coconut oil
factory given the global
demand. In order to
guarantee profitability
and his ability to stay in
business. He has asked
you to help in the
decision-making. Given an
estimated fixed cost of
setting up of Gh¢2m and
variable cost of Gh¢55 per
bottle of oil. Contribution
margin is 12.7%. What
should be the price (to the
nearest whole) if he wants
to breakeven at 250,000
bottles. #randomized](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6cab9f36-0dc4-4e0b-8359-f9250d76fc58%2Fcffdb5c4-2ec5-400e-8831-a8f90f4fcd3b%2Fajauull_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Your dad recently decided
to set up a coconut oil
factory given the global
demand. In order to
guarantee profitability
and his ability to stay in
business. He has asked
you to help in the
decision-making. Given an
estimated fixed cost of
setting up of Gh¢2m and
variable cost of Gh¢55 per
bottle of oil. Contribution
margin is 12.7%. What
should be the price (to the
nearest whole) if he wants
to breakeven at 250,000
bottles. #randomized
![O A. Gh¢63
B. Gh¢62
C. Gh¢65
D. Insufficient information](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6cab9f36-0dc4-4e0b-8359-f9250d76fc58%2Fcffdb5c4-2ec5-400e-8831-a8f90f4fcd3b%2F5bj65xd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:O A. Gh¢63
B. Gh¢62
C. Gh¢65
D. Insufficient information
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