The Arab Dream Company is considering a project that costs $500,000, has a lifespan of 5 years, has no liquidation value and will result in a decrease in net working capital of 100,000 Depreciation is calculated on a straight line to zero over the life of the project and sales are expected at 60,000 units per year. The unit price is $30, the variable cost per unit is $15, and the fixed costs are $660,000 per year. The tax rate is 30 percent, and it requires a 10 percent return on this project. Calculate the financial break-even point?

Answer rating: 100% (QA)

The financial breakeven point is 1000 units Explanation The financial breakeven point is the point a... View the full answer