A company has compiled this information related to a new project: 

Initial investment: $400,000; 

Fixed costs: $65,000; 

Variable costs: $6 per unit; 

Selling price: $20 per unit; 

Discount rate: 11 percent; 

Project life: 5 years; 

Tax rate: 21 percent.

Fixed assets are depreciated using straight-line depreciation over the project's life. 

What is the financial break-even point (i.e., the number of units to break even financially)?

Answer rating: 100% (QA)

To calculate the financial breakeven point we need to determine the number of units that the company ... View the full answer