Parts must be produced each year to just break even

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Reference no: EM131108404

Cash Operating Expenses = 10,000/year

Labor per hour = $16

Production Rate = 25/hour

Depr Type = Straight Line

Selling Price = 1.47/unit

Interest on Debt = 0.35%

Life = 5 years

First Cost = 60,000

Salvage = 10,000

Tax Rate = 42%

Debt Ratio = 37%

Return on Equity = 14.7%

How many parts must be produced each year to just break even? (Use AEC equation)

Reference no: EM131108404

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