Question: We are evaluating a project that costs $983,000, has a 9-year life, and has no salvage value. Assume that depreciation is straight-line to zero over

We are evaluating a project that costs $983,000, has a 9-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 108499 units per year. Price per unit is $43, variable cost per unit is $32, and fixed costs are $925,000 per year. The tax rate is 37%, and we require a 12 % return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-14 percent.

What is the financial break-even quantity?

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