11.

A new product requires an initial investment of $2 million and will be depreciated to an expected salvage of zero over 5 years. The price of the new product is expected to be $25,000, and the variable cost per unit is $10,000. The fixed cost is $500,000. Assume a required return of 18%. What is the financial break-even point?

Select one:

a. 60 units

b. 76 units

c. 92 units

d. 34 units

e. 50 units