Calculator Company Proposes to Invest $5 Million in a New

question 55

Multiple Choice

Calculator Company proposes to invest $5 million in a new calculator making plant. Fixed costs are $2 million a year. A calculator costs $5/unit to manufacture and can be sold for
$20/unit. If the plant lasts for 3 years and the cost of capital is12%, what is the approximate break-even level of annual sales? (Assume no taxes.) (approximately)

• A) $133,333 units
• B) $272,117 units
• C) $227,533 units
• D) None of the above

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Definitions:

Communication

The exchange of information, thoughts, or messages between people through speaking, writing, or other media.

Psychosocial Needs

Refers to the necessary support for an individual's psychological development and social interactions, emphasizing the importance of mental health and community.

Sending And Receiving

The process involved in the transmission and reception of messages or information between individuals or systems.

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A malignancy that develops from breast tissue, which can be detected through various methods such as mammography or biopsy.