Englewood Food Processors makes healthy snack crackers. Each case of crackers produced can be sold...
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Englewood Food Processors makes healthy snack crackers. Each case of crackers produced can be sold to a distributor for $24. The variable cost of producing each case is $13. The company's cash-based fixed costs (such as managers salaries, building rent, some components of insurance) total $5,600,000 per year. The machinery used in the manufacturing originally cost the company $7,200,000, and was expected to have a 9-year useful life. The company's managers feel that the weighted average cost of capital for the company's typical projects is 8,65% per year. What number of cases sold constitutes the company's annual Financial Break-even Point (in previous question 3 you computed the annual Operating or Accounting Break-even Point A. 191,340.22 B. 616,719.78 401,462.03 D. 1.227.594.30 E. 632.145.45
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