An investor was offered a production line project, investment volume 0 0 2850 dollars, annual sales volume (1800) units, unit price (135 dollars), annual variable costs (0 0 720 dollars), annual fixed costs (0 14250). Calculate the rate of return Simple and break-even point for the project.

An investor was offered a production line project, investment volume 0 0 2850 dollars, annual sales volume (1800) units, unit price (135 dollars), annual variable costs (0 0 720 dollars), annual fixed costs (0 14250). Calculate the rate of return Simple and break-even point for the project.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6PB: There are two projects under consideration by the Rainbow factory. Each of the projects will require...

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

An investor was offered a
production line project, investment
volume 00 2850 dollars, annual
sales volume (1800) units, unit
price (135 dollars), annual variable
costs (0 0 720 dollars), annual
fixed costs (0 14250). Calculate
the rate of return Simple and
break-even point for the project.

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