#4 solve asap please Your business has recently purchased a new fabrication mach
ID: 1196924 • Letter: #
Question
#4 solve asap please Your business has recently purchased a new fabrication machine designed to create sellable units Market analysis shows that the company can expect to sell 25,000 units per year. The company uses a MARR of 8 k, and relevant data is provided for the new machine: Assuming your business expects to run this project for ten years, how many units need to be created by each machine to be profitable? Use PW analysis. Will this machine be profitable within this ten-year timeframe? Assuming 25,000 units made/sold per year, in what year will the project reach a break-even point? Round to the whole year. Assuming 25,000 units made/sold per year, what selling price would provide the company exactly the MARR? I.e., if the venture is unprofitable, how high do they need to raise the selling price; if profitable, how low could they sell the units while still making their MARR?
Explanation / Answer
Value of machine considering depreciation
Sale PU - 12.5
A) Each Machine required to make 84500 units to make it profitable. yes this machine will be profitable within ten year of timeframe.
b) 7th year will be the brek vene point for this production.
c) $13.6 per Unit for MARR. They can sell the units at the low price of $13 to make MARR profit atleast.
Cost per unit 7 maintenance per unit 4 Inst cost 1.6 Total 12.6 400000 40000 400000 40000 360000 400000 40000 320000 400000 40000 280000 400000 40000 240000 400000 40000 200000 400000 40000 160000 400000 40000 120000 400000 40000 80000 400000 40000 40000Value of machine considering depreciation
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