The number of units that must be sold at per unit breakdown

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Reference no: EM131926796

The initial cost of machinery for producing a certain item is $50,000. The machinery will have a five-year life with no salvage value.

The manufacturing process has a fixed cost of $5,000 per year and a variable cost of $16 per unit.

At an interest rate of 8% per year, the number of units that must be sold at $20 per unit for breakdown is:

Reference no: EM131926796

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