Calculate the break-even volume at the two levels

Reference no: EM133335772

Case: British Columbia does not have a company that makes locally sourced, environmentally friendly umbrellas for those rainy days that occur quite often in our fall and winter. Our plan is to build a factory that designs and manufactures umbrellas that are made of recycled plastics and locally sourced hemp fibre. The designs would have a west coast theme and feature joint contracts with First Nations including artistic designs plus donations to charities that promote equal opportunity and health improvement initiatives. We call our Umbrellas "Wet Coast" but would consider other names.

Question 1. Calculate the Break-Even volume at the two levels of government assistance ($250,000 and $500,000) Assume a Tax Rate of 20%.

Question 2. Figure out the ROI and Payback for the two scenarios described in the 1st questions. Assume Investment is $800,000. Assume production is 10,000 units.

Reference no: EM133335772

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