Charge per unit to breakeven on investment

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Reference no: EM131573688

Mira Manufacturing invested in a new manufacturing line to increase competitiveness. The initial cost of the line was $292662. The costs to run the line are projected to be $167048, increasing by 13% each subsequent year. To remain competitive, the line will require a substantial overhaul of $46728 at the end of year 6. The line is estimated to have a lifespan of 13 years.

Mira projects it will sell 65388 units the first year, with the number of units sold increasing by 44429 units each subsequent year. What is the minimum price that Mira must charge per unit to breakeven on the investment? Use a MARR of 5% compounded annually to make the calculation.

Enter your answer as follows: 12.34 - round to two decimal places

Do not use a dollar sign ("$").

Reference no: EM131573688

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