Question: We are evaluating a project that costs $843,833, has an eight- year life, and has no salvage value. Assume that depreciation is straight-line to zero

We are evaluating a project that costs $843,833, has an eight- 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 55,213 units per year. Price per unit is $37, variable cost per unit is $20, and fixed costs are $424 per year. The tax rate is 35%, and we require a return of 22% on this project. Calculate the Accounting Break-Even Point. (Round answer to O decimal places. Do not round intermediate calculations)
 We are evaluating a project that costs $843,833, has an eight-

We are evaluating a project that costs $843,833, has an eightyear life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 55,213 units per year. Price per unit is $37, variable cost per unit is $20, and fixed costs are $424 per year. The tax rate is 35%, and we require a return of 22% on this project. Calculate the Accounting Break-Even Point. (Round answer to O decimal places. Do not round intermediate calculations)

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!