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Initial Investment $8,000 Fixed Costs $6,000/year Variable Costs $30/unit Depreciation $2,000/year Price $50/unit Discount Rate 12% Project Life 4 years Tax rate 40% 58. How

Initial Investment

$8,000

Fixed Costs

$6,000/year

Variable Costs

$30/unit

Depreciation

$2,000/year

Price

$50/unit

Discount Rate

12%

Project Life

4 years

Tax rate

40%

58. How much is the contribution margin (after-tax)?

$6

$8

$10

$12

$20

59.

What is the accounting break-even point?

300 units

400 units

450 units

500 units

525 units

60.

How much is the EAC of the initial investment?

$2,212

$2,356

$2,634

$2,856

$2,946

61.

What is the PV break-even point?

412 units

453 units

487 units

522 units

571 units

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