Question: We are evaluating a project that costs $252,000, has a four-year life, and has no salvage value. Assume that depreciation is straight-line to zero over
We are evaluating a project that costs $252,000, has a four-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 7,400 units per year. Price per unit is $59, variable cost per unit is $13, and fixed costs are $214,000 per year. Ignore the effect of taxes. We require a return of 10 percent on this project.
What is the financial break-even quantity?
Group of answer choices
6,021.74
5,932.41
6,380.41
4,652.17
7,053.28
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
