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Make investment in medical syringes

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The company is planning to make an investment in medical syringes and wants to sell one injector for $1. If the investment is made in Izmir, the investment will be realized with a fixed cost of $30,000. The variable cost for each injector is estimated to be $0.60. Also, the tax rate will be 30%.

If the investment is made in Bitlis, one of the priority regions in development, the fixed costs will be completed to $25,000 due to the incentives. The variable cost of the injector will be $0.75, and the tax rate will be 10%.

Since the net profit target of the company is $20,000, will it reach its target faster in Izmir or Bitlis?

Reference no: EM133295999

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