3) A company sells Choco cookies for $15 each and can sell 3,000 per year; $5 of the product price is profit. The company is considering buying a new piece of equipment that will cost $100,000. The new machine will produce Choco Nut that cost $10 to make, can be sold for $15. And can sell 5,000 units of per year. How many years, based on the profit of ChocoNut, will it take the company to completely pay for the machine with its profit.

Question

anonymous · Answer

4?

5$(5,000)= 25,000$

25,000$x4= 100,000

anonymous · Answer

am i correct?

apoorvk · Answer

Exactly. Right-o!!

apoorvk · Answer

But, is it right - the question you posted? Because initial and final margin of profit is the same.

anonymous · Answer

yea the question is right, i have another question for you which is in this link http://openstudy.com/users/hongkong#/updates/4f8f2958e4b000310fad745c

anonymous · Answer

ya i agree to the answer