Problem
The annual demand for widgets has been determined to be 10,000 per year. Each widget sells for $4.00 and costs $2.25 to produce. Using breakeven analysis and an interest rate of 12%, determine the maximum purchase price that could be paid for the required machinery. The machine is expected to last 8 years and to have a salvage value of 5% of the purchase price.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.