Sales price Equipment cost $12.50 per unit $200,000 Overhead cost $50,000 per year Operating and maintenance cost $25 per operating hour Production time per 1,000 units 100 hours Study period...

An electronics firm is planning to manufacture a new handheld gaming device for the preteen market. The data below have been estimated for the product. Assuming a negligible market (salvage) value for the equipment at the end of five years, determine the breakeven annual sales volume for this product.

Extracted text: Sales price Equipment cost $12.50 per unit $200,000 Overhead cost $50,000 per year Operating and maintenance cost $25 per operating hour Production time per 1,000 units 100 hours Study period (planning horizon) 5 years 15% per year MARR