What is the break-even per unit cost

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Reference no: EM131607079

Chrysler is investing $550 million in its Toluca, Mexico plant to produce the retro Fiat 500. It is expected to produce between 100K and 130K cars annually, with 95% for export. Assume a 7-year production cycle (starting in 2011), annual sales of 100,000 cars, $20 million annual costs, 16% annual MARR, and a $10M salvage value. Assuming the average sales price is $16,000 per car, what is the break-even per unit cost?

Reference no: EM131607079

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