A process for producing the mosquito repellant Deet has an initial investment of $160,000 with annual...

A process for producing the mosquito repellant Deet has an initial investment of $160,000 with annual costs of $44,000. Income is expected to be $90,000 per year.

What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon?

When i = 0%, the annual breakeven production quantity is determined to be ......... gallons per year.

When i = 12%, the annual breakeven production quantity is determined to be .......... gallons per year.

Expert Solution

When i=0%,the annual break even production quantity is determined to be 4600 gallons per year.

When i=12%, the annual break even production quantity is determined to be 6545 gallons per year.

jeff jeffy answered 7 months ago

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