Tristan toys invested in new manufacturing system

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Tristan's Toys invested in a new manufacturing system. The initial cost was $327030. Annual costs are projected to be $193637, increasing by 14% each subsequent year. The system will require a substantial overhaul of $37722 at the end of year 7. The line is estimated to have a lifespan of 13 years.

The company projects it will sell 55928 units the first year, with the number of units sold increasing by 36562 units each subsequent year. What is the minimum price that the company must charge per unit to breakeven on the investment? Use a MARR of 4% compounded annually to make the calculation.

Note- please use compound interest factors if possible.

Reference no: EM131893236

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