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Cantor's has been busy analyzing a new project. Management has determined that the new project requires an initial investment in fixed assets of $1.6 million,
Cantor's has been busy analyzing a new project. Management has determined that the new project requires an initial investment in fixed assets of $1.6 million, which will be depreciated over six years with no expected salvage value. Assume no change in net working capital. The annual fixed costs are $329,000 and the variable cost will be $325 per unit and a sale price of $515 per unit. The tax rate is 21 percent and the required rate of return is 15 percent. What is the accounting break even quantity? 2,047 units 2,568 units 2,879 units 3,135 units 3,452 units
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