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An investment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight-line to zero over the 4-year life of the
An investment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight-line to zero over the 4-year life of the project. The sales price is $19.95 a unit, annual fixed costs are $237,000, the variable costs per unit are $8.87, and the tax rate is 23 percent. At what annual sales quantity will the investment break even on an accounting basis?
Select one:
a. 29,889 units
b. 24,092 units
c. 32,088 units
d. 30,135 units
e. 26,129 units
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