Julia is analysing a project which has a capital cost of 500,000 and has a five...
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Julia is analysing a project which has a capital cost of £500,000 and has a five year life. Depreciation on the whole of the capital cost is charged straight line over the life of the project. Sales are projected are 12,000 units per year with a price per unit of £100 and variable costs of £60. Fixed costs are £250,000 per year. The cost of capital is 15 per cent. Ignore taxes. What is the cash break-even level of sales per year? Julia is analysing a project which has a capital cost of £500,000 and has a five year life. Depreciation on the whole of the capital cost is charged straight line over the life of the project. Sales are projected are 12,000 units per year with a price per unit of £100 and variable costs of £60. Fixed costs are £250,000 per year. The cost of capital is 15 per cent. Ignore taxes. What is the cash break-even level of sales per year?
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