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.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 2.3CE
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