What is tom break-even point in units

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Hal E. Burton hospital can purchase a new machine (to be placed in an undisclosed location) for $1,000,000 that will provide an annual net cash flow of $300,000 per year for five years. The machine will be sold for $100,000 at the end of year five. What is the net present value of the machine if the required rate of return is 11.5%. (Round your answer to the nearest $1,000.)

Tom's Hospital Supplies Inc. has fixed costs of $150,000. Tom's Hospital Gowns sell for $50 and have a unit variable cost of $35. What is Tom's break-even point in units?

Reference no: EM132473506

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