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MaRussiya [10]
3 years ago
15

Erie company has 500 units of capacity for their traditional product, Emu, and buys one point of automation. If Erie company’s c

urrent labor cost per unit of Emu is $10, and Erie sells 1,000 units per year of Emu, what is the payback period for this investment?
Business
1 answer:
11111nata11111 [884]3 years ago
8 0

Answer: 2 years

Explanation:

The payback period is the amount of time that is needed for the required cash inflow of a project to offset the initial cash outflow that the business offsets. The payback period is when the initial outlay of an investment is recovered. There are two different methods used to calculate payback period. We have the average method and the subtraction method.

In the above question, the payback period is solved as follows:

Labour cost decreases by 10% for each unit.

Therefore,

= $10 × 10%

= $10 × 0.1

= $1 per unit.

In order to recover $2000, the business needs to sell the following;

= 2000/1

= 2000units.

If Eric sells 1000 units per year of Emu, it will take:

2000/1000= 2years

In conclusion, the payback period of the investment is 2 years.

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Answer:

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3 years ago
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Nastasia [14]

If a legal monopoly owns the exclusive rights to a good for 20 years, it has a patent for that good.

What do you mean by monopoly?

Monopoly translates to "alone to sell." When there is only one vendor of a given commodity, there is little to no intense rivalry from other sellers. We'll examine the characteristics of a monopoly market in this post.

What do u understand by patent?

An innovator receives a property right known as a patent from a government body. In exchange for full disclosure of the innovation and for a set amount of time, a patent grants the creator exclusive rights to the patented process, design, or invention.

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The Four Quadrants of oneself is a model of description of the human interaction process created by psychologists that divides personal consciousness into four quadrants into:

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