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A small manufacturer that makes clothespins and other household products buys new injection molding ...

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A small manufacturer that makes clothespins and other household products buys new injection molding ...

A small manufacturer that makes clothespins and other household products buys new injection molding equipment for a cost of $500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of 15%. If the manufacturer currently makes 75 tons of clothespins per year, which sell at $18,000 per ton, what will be the increase in revenue next year from the new equipment?

▸ $80,500

▸ $20,700

▸ $202,500

▸ $857,000

Textbook

Fundamentals of Corporate Finance

Edition: 2^nd

Authors: Berk, DeMarzo, Harford

Read 137 times

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