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This post was last edited by Waqi Xi Qi Jun on 2016-4-20 at 21:59. 1. A certain chemical plant has a production capacity of 1,000 tons per year; due to market conditions, its actual production capacity is currently 500 tons per year. The fixed costs per year amount to 100,000 yuan, while the costs associated with raw materials and labor for each ton of product are 300 yuan. The selling price of the product is 520 yuan per ton. Find: (1) the break-even point for this factory and the corresponding capacity utilization rate; (2) if another new customer wishes to order 500 tons per year of the product at a reduced price of 300 yuan per ton, do you think the factory should accept this order? Why? (3) Some suggest reducing the price by 15% to achieve full capacity production. From an economic perspective, do you think this is feasible? What is the break-even production volume at this point? 2. To improve the control of the process and increase yield, some have suggested using a set of automatic control devices. The cost of purchasing and installing this set of equipment is 50,000 yuan; its service life is 10 years, with annual maintenance costs of 3,000 yuan. By using this equipment, the net income increases by 10,000 yuan per year due to higher productivity. Assuming a discount rate of 10%, calculate: (1) the static and dynamic payback periods for this investment plan, as well as the internal rate of return ; (2) If certain uncertainties affect the average annual net income, estimate the minimum average annual net income level required to keep the project profitable. The score is too low to assign a rating; please use WeChat Cash Transfer. Thank you.
This question is too simple; you can figure out how to solve it just by taking a quick look at the book