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Michael M. has compiled this information related to a new project: Initial investment: $800,000; Fixed costs: $450,000; Variable costs: $12.00 per unit; Selling price: $37.00
Michael M. has compiled this information related to a new project: Initial investment: $800,000; Fixed costs: $450,000; Variable costs: $12.00 per unit; Selling price: $37.00 per unit; Discount rate: 10 percent; Project life: 5 years; Tax rate: 34 percent. Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point?
26,875
27,102
27,493
27,863
29,140
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