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A project under consideration costs $300,000 with a five-year life and no resitual value. The required return is 15% and the income tax rate is
A project under consideration costs $300,000 with a five-year life and no resitual value. The required return is 15% and the income tax rate is 21%.
Annual unit sales are projected at 15,000 units at a unit sales price of $20. The unit variable costs are $8 and cash fixed costs are $50,000 per year.
Calculate, in units and dollars, the accouting breakeven, cash breakeven, and finance break even. Please show your all your work and formulas.
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