In order to produce a new product, a firm must lease equipment at a cost of $185,000 per year. The managers feel that they can sell 67,000 units per year at a price of $92. What is the highest variable cost that will allow the firm to at least break even on this project? (Round your answer to 2 decimal places.)

In order to produce a new product, a firm must lease equipment at a cost of $185,000 per year. The managers feel that they can sell 67,000 units per year at a price of $92. What is the highest variable cost that will allow the firm to at least break even on this project? (Round your answer to 2 decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 4P

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