Question: Thompson's has determined that a new project is expected to have fixed costs of $132,378,a contribution margin of $36.20, and a tax rate of 34
Thompson's has determined that a new project is expected to have fixed costs of $132,378,a contribution margin of $36.20, and a tax rate of 34 percent. The investment has an initial cost of $548,000 that will be depreciated straight-line to zero over the 5-year life of the project. The EAC at 15 percent is $163,476.90. What is the expected financial break-even point in units per year? 8,939 units 9,046 units 9,331 units 9.849 units 9,615 units
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