Purchase Solution

# Cost Benefit Analysis

Not what you're looking for?

(2) A company can manufacture a product with two different machines. Machine "A" has a \$4.00 manufacturing cost per unit and a fixed cost of \$3,000 for tools. Machine B costs \$45,000 to purchase and has a \$0.50 manufacturing cost per unit. With an annual anticipated volume of 7,000 units. The break-even point, in years, is most nearly?

(1) An automated measurement system has an initial cost of \$36,000 and annual maintenance is \$2,700. after 3 years the salvage value is \$9,000. if the interest rate is 10%, the equivalent uniform annual cost is most nearly.

##### Solution Summary

The solution explains how to do a break-even analysis as also to calculate the uniform annual cost

##### Solution Preview

The breakeven point is where total costs equal total revenues. In the first case, we have a fixed cost of 3,000 and a variable cost of 4, in order to find the breakeven point we need the selling price. Subtract the variable cost from the ...

##### Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

##### Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

##### Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

##### Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

##### Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.