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Program X has. an annual cost of $35,000 and, in return , is expected to save the company C $40,000 during the first year. Assuming the cost and savings are equally distributed across each month, after how many months will the company recover is investment in Program X

Respuesta :

40000/12=3333.33 Savings per month
35000/3333.33=10.5 month needed to recover the investment

According to unitary method, the company will take 10.5 months to recover investment in Program X.

What is unitary method?

'The unitary method is a technique for solving a problem by first finding the value of a single unit, and then finding the necessary value by multiplying the single unit value.'

According to the given problem,

Annual cost of Program X = $35,000

Cost of Program X during the first year = $40,000

Cost of Program X per month = $( 40,000/12 )

                                                  = $3,333

Time needed to recover investment = 35,000/3,333

                                                             = 10.5 months

Hence, we can conclude, the company will take 10.5 months to recover investment in Program X.

Learn more about unitary method here:

https://brainly.com/question/22056199

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