Business, 12.03.2020 04:34 brebee24

Capsim company Andrew's purchases one point of automation for production of its product Awesome. Units of first shift capacity for Awesome are 10,000, Andrew's sells 20,000 units of Awesome per year, and each unit of Awesome produced requires one hour of labor. Sales Revenue per unit are $10, Direct Materials per unit are $2, Andrew's company has no carrying costs, and the Contribution Margin per unit is $2. What is the payback period for Andrew's investment in automation?a. 3.333 Years

b. 0.833 Years

c. 2.667 Years

d. Cannot be Determined with Information Provided

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Capsim company Andrew's purchases one point of automation for production of its product Awesome. Uni...

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