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Business, 30.05.2020 17:58 lifewseth

The PARC Company makes whatsits and in order to make whatsits, they must have gismoes. PARC can purchase gismoes to be used in building whatsits for $90 each. PARC can manufacture their own gismoes for $7000 per year overhead cost plus $25 direct cost for each gismoe, provided they purchase a gismoe maker for $100,000. PARC expects to make whatsits using gismoes for 10 years. The gismoe maker should have a salvage value of $20,000 after 10 years. PARC uses 12% as its minimum attractive rate of return. At what annual production rate should PARC make their own gismoes

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