13

The following data apply to the next three questions. A project under consideration costs 600,000, has a five-year life, and has no salvage value, Depreciation is straight-line to zero. The required return is 15%, and the tax rate is 34%. Sales are projected at 400 units per year. Price per unit is $3,000, variable cost per unit is $1,900, and fixed costs are $250,000 per year. 5 0 3 13 of 40 Mark Given the above base case projections, what is the accounting break-even sales for this project? Ignore taxes. O A 378 units OB. 336 units OC. 393 units OD 413 units O E. None of the above Unsure