What you know: New engraver cost: $25,000 One-year loan cost: 12% interest Revenue per day from engraving: $975 Profit margin on engraving: 25% Potential days lost, if engraver breaks: 18
A) Amount of net profit that could be lost if the engraver breaks ?
B) How long it will take to pay for the engraver if the entire net profit is allocated toward paying for it?