Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 1

A company is considering an investment in a machine that it believes will speed up production of a product. The machine will cost the company $2,000,000. Products produced using the machine will sell for $25 per unit. The variable cost per unit incurred producing the product is believed to be $10. What quantity of sales is required for the company to break-even if it purchases the machine?