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CCC proposes to invest $12 million in a new calculator plant that will depreciate on a straight-line basis. Fixed costs are $3 milli per year.

CCC proposes to invest $12 million in a new calculator plant that will depreciate on a straight-line basis. Fixed costs are $3 milli per year. a calculator cost $10 per unit to manufacture and sells for $30 per unit. If plant lasts for four years and the cost of capital is 20%, what is the accounting break-even lvl of annual sales? (no taxes)

300,000 units

150,000 units

381,777 units

750,000 units

366,667 units

I know the formula is (FC+D)/P-V but what is D and how do you get it?

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