At what production quantity per year would brewery be

Reference no: EM13394538

A brewery is considering two potential production investments:

Option A costs an initial $2 million and will involve constant marginal cost of $5

option B costs an initial $4 million and will involve constant marginal cost of $3

In order to make the calculations simple, assume the annual capiital cost is 10% of the total investment. At what production quantity per year would the brewery be indifferent between these two investment opportunities?

A. 20000

B.100000

C. 200000

D. 150000

Reference no: EM13394538

Questions Cloud

The sales mix percentages for novotnas boston and seattle : the sales mix percentages for novotnas boston and seattle divisions are 70 and 30. the contribution margin ratios are

Describe the properties of a normal distribution why are : describe the properties of a normal distribution. why are there infinite possible normal distributions? why should one

The company then expects to settle down to a : givens inc. is a fast growing technology company that paid a 1.25 dividend last week. the companys expected growth

Examine the pros and cons from the perspective of crestview : write a four to six 4-6 page paper in which youexamine the pros and cons from the perspective of crestview hospital of

At what production quantity per year would brewery be : a brewery is considering two potential production investmentsoption a costs an initial 2 million and will involve

Prepare a schedule of cash receipts for victorias apparel : victorias apparel has forecast credit sales for the fourth quarter of the year asseptember actual . . . . . . .

Thompson enterprises has 5000000 of bonds outstanding each : 1. which of the following statements about listing on a stock exchange is most correct?a. listing is a decision of more

Assess management structures which can lead to an effective : 1 explain the principles of tqm in relation to a specific application2 evaluate management structures that can lead to

Write down a paper of no more than 750 words in which you : write down a paper of no more than 750 words in which you discuss the difference between comparative and ratio

User Account

All Pages