Calculate the break even revenue and the break even units based on the following information. 1. The cost of developing the Trinova is forecast at $900 million, and this investment can be depreciated in 6 equal annual amounts. 2. Production of the plane is expected to take place at a steady annual rate over the following 6 years. 3. The average price of the Trinova is expected to be $15.5 million. 4. Fixed costs are forecast at $175 million a year. 5. Variable costs are forecast at $8.5 million a plane. 6. The tax rate is 50%. 7. The cost of capital is 10%. SHOW CALCULATIONS.

Multiple choice:

719 million, 46 planes

791 million, 60 planes

619 million, 64 planes

819 million, 55 planes