The Sector Inc. has determined that an operating cash flow of $24,300 will result in a zero net present value for a proposed project. The fixed costs of the project are $9,360 and the contribution margin is $4.30. The company feels that it will capture 18 percent of the 60,000 unit market for this product. Calculate the appropriate break even and determine whether the company could develop the new product or why not.

Answer rating: 100% (QA)

Break even point in unit are 2177 units Since the developing profit is more ... View the full answer