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A small manufacturing company is evaluating a new product line. The project requires an initial investment of $ 1 0 0 , 0 0 0

A small manufacturing company is evaluating a new product line. The project requires an initial investment of $100,000. The company needs to calculate the cash, accounting, and financial breakeven
points. Here are the details:
Initial Investment: $100,000
Fixed Costs: $30,000 per year
Variable Costs: $10 per unit
Selling Price: $20 per unit
Annual Depreciation Expense: $10,000
Tax Rate: 25%
Cost of Capital: 8%
What is the financial breakeven (in sales $ )?
Multiple Choice
$75601
$80000
$101340
$110657
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