An investment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight-line to zero over 4 years, which is the life of the project. The sales price is set at $19.95 a unit, the annual fixed costs of $237,000, and the variable cost per unit is $8.87. The tax rate is 34 percent and the discount rate is 11 percent. At what sales quantity per year will the investment break even on an accounting basis?

Select one:

a. 32,088 units

b. 29,889 units

c. 24,092 units

d. 30,135 units

e. 26,128 units