Math Unit 4 homework

# 7 given a 25 profit margin and 975 per day in revenue

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7. Given a 25% profit margin and \$975 per day in revenue, how many days would it take for the new engraver to earn back the total cost of purchase, if the entire net profit were allocated to pay for the unit? Round your answer to the next full day. It would take 104 days to earn enough profit to cover the cost of the engraver. (\$975*25% = \$243.75 per day profit). \$25,300/\$243.75 = a rounded up 104 days). 8. What other factors should Charlie consider in order to make a good business decision? Another factor Charlie should consider is whether or not he has the staff

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available to keep both the old machine and the new machine running until the old one finally breaks and essentially doubling his income? 9. Should Charlie buy the new engraver? Why? Yes. Charlie should by the engraver. Although it is a high cost item, the profits are high as well. He stands to gain far more than he stands to lose by making the purchase. Actually, the only short term loss he would have would be the payments. Everything else about the machine is a plus. In a little more than 3 months he can have it paid off and be back in the profit mode, potentially at an even greater pace with todays’ technology. The old machine may work fine but it is 12 years old. I am sure there have been many positive improvements in the machine over last 12 years.
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