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A company is considering a 5-year project that opens a new product line and requires an initial outlay of $75,000. The assumed selling price is
A company is considering a 5-year project that opens a new product line and requires an initial outlay of $75,000. The assumed selling price is $92 per unit, and the variable cost is $52 per unit. Fixed costs not including depreciation are $21,000 per year. Assume depreciation is calculated using stright-line down to zero salvage value. If the required rate of return is 13% per year, what is the cash break-even point? (Answer to the nearest whole unit.)
Selected Answer: Incorrect 900?
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