A new product requires an initial investment of RM7 million and will be depreciated to an expected salvage of zero over 5 years. The price of the new product is expected to be RM20, 000, and the variable cost per unit is RM10,500. The fixed cost is RM2 million. What is the accounting break-even point each year?

Select one:

a. 310 units

b. 358 units

c. 318 units

d. 350 units