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40,000 units and $400,000 are the break-even point in units and dollars respectively.
<u>For units:</u>
$200,000/5 = 40,000
<u>For dollars:</u>
40,000 x $10 = $400,000
<h3><u>What is a </u><u>
break-even point </u><u>?</u></h3>
The break-even threshold is reached when overall costs and total revenues are equal, leaving your small firm with no net benefit or loss. In other words, you've achieved the point in manufacturing when the income from a product matches the cost of manufacture.
This is a crucial calculation to include in your business strategy for every new venture. Potential investors want to know when they may anticipate a return on their investment as well as the rate at which it will occur. This is due to the fact that some businesses may take years before becoming profitable, frequently losing money in the initial months or years before achieving break-even. Break-even point is crucial in every company plan given to a potential investor because of this.
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The five workers comprised a self managed or self organized team in which this describes a small group or a group of people which are employees that discusses a plan in which is about activities or duties that they ought to do. Which is being done without any guidance of any higher authority. It is being described above for the group of employee has decided to discuss about their issue without the help of their supervisor.
Answer:
a). You will have a total of $186,587.66 at the end of 42 years
b). You will have total of $78,816.64 at the end of 32 years
Explanation:
a). How much you will earn after 42 years
Step 1: Determine amount earned in 42 years
The total amount earned can be expressed as;
A=P(1+r)^n
where;
A=total amount earned
P=Initial investment amount
r=Annual interest rate
n=number of years of investment
In our case;
P=$5,000
r=9%=9/100=0.09
n=42 years
replacing;
A=5,000(1+0.09)^42
A=5,000(1.09)^42
A=186,587.66
You will have a total of $186,587.66 at the end of 42 years
b). Amount after 32 years
where;
P=5,000
r=9%=9/100=0.09
n=32 years
replacing;
A=5,000(1+0.09)^32
A=5,000(1.09)^32
A=78,816.64
You will have total of $78,816.64 at the end of 32 years
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