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Lumina Inc. sells desk lamps for $85 each. The variable cost per lamp is $29 and the fixed cost per year is $23,000. Creating a
Lumina Inc. sells desk lamps for $85 each. The variable cost per lamp is $29 and the fixed cost per year is $23,000. Creating a lamp requires an initial investment in equipment of $150,000 which has a life span of five years. What is the economic or NPV break-even number of books that must be sold each year given a discount rate of 12 percent?
A. 1374
B. 1562
C. 1154
D. 1492
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