Essay
A local carpet manufacturer's plant and equipment cost $285,000 and are estimated to have a lifetime of 20 years.Straight-line depreciation is to be used.Additional fixed costs per year are $130,000.Variable costs are $200 per roll of carpet and the price per roll is $3,000.What will annual profit be if the annual volume is 15,000 rolls?
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Annual depreciation = $285,000/20 years ...View Answer
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