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What is the breakeven number at which bd should clear land

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Reference no: EM133002700

Problem 1: Boggy Developers contracts with Forestry management $120 per hour to clear the trees. BD is analyzing the economic impact of purchasing its own forestry mulcher and doing the task itself for next 3 years. The cost of new forestry is 90,000 which includes 3 years warranty on all parts and labor for repairs. The sales price of the equipment after 3 years is estimated at 60,000. Variable costs are estimated at $50 per hour. What is the breakeven number at which BD should clear land itself?

Reference no: EM133002700

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