What is the minimum annual production level

Reference no: EM13270079

ABC company is considering the introduction of a new product line. The initial investment required for this project is $400,000 , and annual maintenance costs are anticipated to be $55,000 . Annual operating costs will be directly proportional to the level of production at $11.5 per unit, and each unit of product can be sold for $42 . If the MARR is 20 % and the project has a life of five years, what is the minimum annual production level for which this project is economically viable?

Reference no: EM13270079

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