A company sells Tidbits to consumers at a price of $92 per unit. The costs...
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A company sells Tidbits to consumers at a price of $92 per unit. The costs to produce Tidbits is $22 per unit. The company will sell 11,000 Tidbits to consumers each year. The fixed costs incurred each year will be $150,000. There is an initial investment to produce the goods of $3,700,000 which will be depreciated straight line over 17 year life of the investment to a salvage value of $0. The opportunity cost of capital is 6% and the tax rate is 34%.
What is operating cash flow each year?
Find the net present value break-even level of units sold. Round your answer to the nearest whole unit
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