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Business, 08.03.2021 19:40 Kaesy24

A company is asking you to evaluate whether to start a specialty tile manufacturing unit. The initial cost of setting up the manufacturing infrastructure is estimated to be $2000,000. The cost of manufacturing each type of tile is $4 and the estimated revenue for each is $8. A. Tell the management the number of units they must sell in the first six month to break-even between revenue and costs.
B. Should the company invest in this venture if the marketing says their forecast is for 400,000 units during the first six months?

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