Block Corporation is considering a project that would require an investment of $279,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows: Sales Variable expenses Contribution margin Fixed expenses: Salaries Rents Depreciation Total fixed expenses 224,000 22,000 202,000 25,000 38,000 33,000 96,000 106,000 Net operating income • Note - when calculating annual revenue, we don't consider costs that change based on the number of items produced.

Block Corporation is considering a project that would require an investment of $279,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows: Sales Variable expenses Contribution margin Fixed expenses: Salaries Rents Depreciation Total fixed expenses 224,000 22,000 202,000 25,000 38,000 33,000 96,000 106,000 Net operating income • Note - when calculating annual revenue, we don't consider costs that change based on the number of items produced.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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