4. Your friend wants to sell his shawarma business in mall of Dhahran. The rent of shop, machine, and all other expenses are amounting to $100000 for 10 years that you need to pay at day one. Annual operating costs for the business will be $1000. The cost of raw material per shawarma is $2. If the average number of customers per year is 275444. What should be the minimum price of shawarma to avoid any loss if the MARR is 12%/year. a) $3.876 b) $1.089 C) $2.068 d) $4.009

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter3: Cost-volume-profit Analysis
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Problem 8EB: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an...
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4. Your friend wants to sell his shawarma business in mall of Dhahran. The rent of
shop, machine, and all other expenses are amounting to $100000 for 10 years that
you need to pay at day one. Annual operating costs for the business will be $1000.
The cost of raw material per shawarma is $2. If the average number of customers
per year is 275444. What should be the minimum price of shawarma to avoid any
loss if the MARR is 12%/year.
a) $3.876
b) $1.089
C) $2.068
d) $4.009
Transcribed Image Text:4. Your friend wants to sell his shawarma business in mall of Dhahran. The rent of shop, machine, and all other expenses are amounting to $100000 for 10 years that you need to pay at day one. Annual operating costs for the business will be $1000. The cost of raw material per shawarma is $2. If the average number of customers per year is 275444. What should be the minimum price of shawarma to avoid any loss if the MARR is 12%/year. a) $3.876 b) $1.089 C) $2.068 d) $4.009
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