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Verizon [17]
3 years ago
11

A small manufacturer that makes clothespins and other household products buys new injection molding equipment for a cost of $500

,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of 25%. If the manufacturer currently makes 75 tons of clothespins per year, which sell at $18,000 per ton, what will be the increase in revenue next year from the new equipment
Business
1 answer:
Nikitich [7]3 years ago
8 0

Answer:

$337,500

Explanation:

Data provided in the question

Cost of an equipment = $500,000

Increased in sales = 25%

Currently number of tons made per year = 75 tons

Selling price per ton = $18,000

Based on the above information, the increased in revenue next year is

= Increased in sales × Currently number of tons made per year × Selling price per ton

= 25% × 75 tons × $18,000

= $337,500

By applying the above formula we can get the increased in revenue amount

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