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Consider the following project which costs $1,000,000 with a salvage value of $50,000 in 5 years. The project will produce a new type of running
Consider the following project which costs $1,000,000 with a salvage value of $50,000 in 5 years. The project will produce a new type of running shoes which will be sold for $235 and have variable costs of $95 per pair. The company has fixed costs of $1,500,000 and a required return on projects of 12.5%. The company uses straight-line depreciation method. Find the Accounting Break-even quantity?
Select one:
a. 10,714
b. 9,567
c. 8,985
d. 11,678
e. 12,071
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