Mgmt 324 HW 1

# Mgmt 324 HW 1 - Assessment View Attempt 0 of unlimited...

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Assessment https://blackboard.purdue.edu/webct/urw/lc5503772499061.tp5655940632191/gradeAssessment.dowebct[2/22/2011 3:48:43 PM] Comments: 3. Oscar produces beef hotdogs with a unit contribution of \$ 1.10 per pound. The fixed cost of producing beef hotdog per year is 5.5 million for Oscar. In addition to this 5.5 million fixed cost, Oscar needs to purchase a machine at a cost of 11 million. The machine can last for 10 years and will be depreciated linearly over the 10 years. What is the accounting break-even unit volume for Oscar per year? Student Response Value Correct Answer Feedback 1. 5.0 million 2. 15 million 3. 4.0 million 4. 6.0 million 100% 5. 10 million General Feedback: Depreciation per year: 11 million/10 years=1.1 million per year
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Mgmt 324 HW 1 - Assessment View Attempt 0 of unlimited...

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