Glucose Scan Incorporated (GSI) is considering a new glucose monitor project that will last for three years. It requires an initial investment of $100,000. The glucose monitor is expected to be sold at a price of $100 each. The variable cost per monitor is $20, and the fixed cost per year is $20,000. 

Assume that revenues and costs occur at the end of each year. The appropriate discount rate is 10% p.a. Ignoring income taxes and depreciation, what is the break-even level of sales?

Answer rating: 100% (QA)

The breakeven point is the number of units that must be sol... View the full answer