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2 Lee Corporation is evaluating a project that costs $800,000, has a five-year life, and has no salvage value. Assume that depreciation is straight-line to
2 Lee Corporation is evaluating a project that costs $800,000, has a five-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. The tax rate is 35%, and Lee Corp. requires a 15% return on this project. Sales are projected at 380 units per year. Price per unit is $5,000, variable cost per unit is $2,200, and fixed costs are $350,000 per year. What is the financial breakeven sales for this project? O a. 312 units O b. 280 units O c. 255 units O d. 210 units O. None of the above
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