What is the break-even sales price per unit

Reference no: EM13181921

A consumer product company is considering introducing a new shaving system called DELTA-4 in the market. The company plans to manufacture 75 million units of DELTA-4 a year. The investment at time 0 that is required for building the manufacturing plant is estimated as $500 million, and the economic life of the project is assumed to be 10 years. The annual total operating expenses, including manufacturing costs and overheads, are estimated as $175 million. The salvage value that can be realized from the project is estimated as $120 million. At a MARR of 25%, what is the break-even sales price per unit?

Reference no: EM13181921

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