You are hired as a consultant to decide if your client should purchase a new, highly specialized, piece of equipment.The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life.The initial investment to acquire and install the equipment is $256,000.The variable cost to produce each unit will be $15 and the selling price for the finished product will be $30.Which of the following best describes the situation the firm is facing?
A)The company will recover its initial investment
B)The company's total margin will be less than its investment
C)It's a good investment
D)The break-even is lower than the 15,000 units that are expected to sell
E)All of the above

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The Answer of You are hired as a consultant to decide if your client should purchase a new, highly specialized, piece of equipment.The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life.The initial investment to acquire and install the equipment is $256,000.The variable cost to produce each unit will be $15 and the selling price for the finished product will be $30.Which of the following best describes the situation the firm is facing?
A)The company will recover its initial investment
B)The company's total margin will be less than its investment
C)It's a good investment
D)The break-even is lower than the 15,000 units that are expected to sell
E)All of the above

You Are Hired as a Consultant to Decide If Your