A manufacturer considers two methods for producing a

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A manufacturer considers two methods for producing a circuit board.The board can be hand-wired at a $0.98 per unit and annual fixed cost of $1,000.A printed circuit board can be produced using an equipment costing $18,000 with a service life of 9 years and a salvage value of $1,000. It is estimated that the labor cost for printed circuit board is $0.32 per unit and the processing equipment will cost $450 per year to maintain.
If the interest rate is 13%, how many circuit boards must be produced each year for the 2 methods to break even?

Reference no: EM13596695

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