Question: Given the information below for a new project, calculate the minimum number of units to be sold for the financial break-even point to be achieved.

Given the information below for a new project, calculate the minimum number of units to be sold for the financial break-even point to be achieved.
Initial investment: $500K
Project life: 2 years
NOWC: $0
Fixed costs: $100K per year
Depreciation: $50K per year
Variable costs: $5 per unit
Price: $10 per unit
Discount rate: 10%
Tax rate: 40%
Salvage value: $0
4,571 units
64,571 units
66,032 units
) 126,032 units
none of the above

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!