. Beverly Cutlery makes high quality kitchen knives. Each set of knives produced can be sold to a distributor for $94. The variable cost of producing each set is $68. The companys cash-based fixed costs (such as managers salaries, building rent, some components of utilities and insurance) total $800,000 per year. The machinery used in the manufacturing originally cost the company $4,248,000, and was expected to have a 9-year useful life. The companys managers feel that the weighted average cost of capital for a project of this type would be 8.4% per year. What number of units sold constitutes the companys annual Financial Break-Even Point? [In previous question 3 you computed the annual Operating or Accounting Break-Even Point.]

• A. 4,177.99
• B. 57,360.47
• C. 9,206.00
• D. 101,106.09
• E. 53,032.62