Increase in revenue next year from the new equipment

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Reference no: EM132063951

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 $ 20,000 per ton, what will be the increase in revenue next year from the new equipment?

Reference no: EM132063951

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