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35.) The Company proposes to invest $7,000,000 in a new type of equipment. The fixed costs are $1,400,000 per year. The equipment will last for

35.)

The Company proposes to invest $7,000,000 in a new type of equipment. The fixed costs are $1,400,000 per year. The equipment will last for five years. The variable cost per unit is $1 and each unit sells for $6. The cost of capital is 20 percent. Calculate the financial break-even sales quantity per year. (Ignore taxes).

735,008 units

815,008 units

748,132 units

584,380 units

560,008 units

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