Question: Based on the following information, solve for the quantity needed to break-even on a financial basis. The OCF needed to Break-Even on a financial basis

Based on the following information, solve for the quantity needed to break-even on a financial basis.

  • The OCF needed to Break-Even on a financial basis is $345,000.
  • The project requires a $1,350,000 investment depreciated straight-line to zero over it's 5 year life.
  • The contribution margin is $2,750 per unit.
  • Fixed costs are $75,000 per year.

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