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$