1.The Highlight Company is reviewing a proposed 7-year project with an initial cost of $687,400. The annual fixed costs are $92,800, the variable cost per unit is $49.79, and the sales price per unit is $89. The tax rate is 34 percent and the discount rate is 12 percent. All assets are depreciated straight-line over the life of the project for accounting purposes. What is the accounting break-even point in units per year?

2. A firm has a total market value of $89,600 with 6,500 shares of stock outstanding. What will be the total market value of the firm if it does a 1-for-2 reverse stock split?