Find the accounting and cash break even units of production

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Reference no: EM13970964

The Marvel Mfg. Company is considering whether or not to construct a new robotic production facility. The cost of this new facility is $600,000 and it is expected to have a six-year life with annual depreciation expense of $100,000 and no salvage value. Annual sales from the new facility are expected to be 2,000 units with a price of $1,000. Variable production costs are $600 per unit. Variable production costs are $600 per unit and fixed cash expenses are $80,000 per year. a) find the accounting and the cash break even units of production. b) Will the plant make a profit based on its current level of operation? c) Will the plane contribute cash flow to the firm at the expected level of operations? The accounting break-even units of production are ___ units. Round to whole numbers.

Reference no: EM13970964

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