Which alternative would you recommend?

Calculate the cost of common equity financing using Gordon Model
December 26, 2020
Describe the organizations current hiring needs and projected hiring needs for the coming year
December 26, 2020

A parts manufacturer plans to replace its existing facility with a new one The management is considering two possible capacities for the new facility: 200,000 or 250,000 units per year The 200,000 unit plan would have an annual fixed cost of $40 million and a per unit production cost of $20 The 250,000 unit plan would have an annual fixed cost of $6 million and a per unit cost of $15 The parts will be sold for an average price of $60 per unit

 

a What would be the break even point for each capacity alternative

b Suppose that the company projects its sales to be 220,000 units per year Which alternative would you recommend? – For this part calculate the annual profit in each case

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trbet giriş - kronosslot -

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