Calculate the annual return on investment

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Reference no: EM131200627

Calculate the annual return on investment (ROI) in for the process improvement in Example 16.5 if the factory operates 300 days per year, but sells only 500 widgets per day.

Example 16.5

Assume the cost of producing a new product is $1,000,000. Then the BEP occurs when net profit from the product reaches $1,000,000. Let's say the profit per widget is $1.00 and we're selling 1,000/day. What is the BEP in years?

Reference no: EM131200627

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