Breakeven analysis-payback period

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Question 1: Breakeven Analysis

Complete this breakeven analysis problem and submit your answer to Drop Box 6.1. To receive full credit, you must show your work. 

XYZ Home Health Care Agency is considering adding a new service. The anticipated charge per service is $150. The variable cost associated with providing this service is $50. Fixed costs are $2,000. What is the breakeven point for this new service?

Question 2: Payback Period

Complete the following problem and submit your answer to Drop Box 6.2. To receive full credit, you must show your work.

ABC Company is anticipating buying a new piece of equipment with a cost of $250,000. The projected cash flows over the useful life of the equipment are $26,500. What is the payback period for this piece of equipment?

Reference no: EM132444792

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