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Cedar Company has the following information related to a new project: Initial investment: $1,498,000; Fixed costs: $416,000; Variable costs: $12.30 per unit; Selling price: $31.20
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Cedar Company has the following information related to a new project: Initial investment: $1,498,000; Fixed costs: $416,000; Variable costs: $12.30 per unit; Selling price: $31.20 per unit; Discount rate: 13 percent; Project life: 5 years; Tax rate: 25 percent. Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point?
46,773 units
44,275 units
48,924 units
50,008 units
42,683 units
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