What is the minimum annual production level

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Reference no: EM131636928

ABC company is considering the introduction of a new product line. The initial investment required for this project is $450,000 , and annual maintenance costs are anticipated to be $60,000 . Annual operating costs will be directly proportional to the level of production at $12.5 per unit, and each unit of product can be sold for $40 . If the MARR is 25 % and the project has a life of five years, what is the minimum annual production level for which this project is economically viable? (Enter your answer as a number rounded to the nearest whole number.)

Reference no: EM131636928

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