(No excel) You are reviewing a new busines proposal. The new product is expected to be sold at $1 per unit, and the variable cost is $0.4 per unit. To initiate the project, you need to purchase a new equipment which costs $5000 and the life of the equipment is four years with zero salvage value. The fixed cost for the product is projected to be $500 and the tax rate is 30%.

a.What is accounting breakeven point?

b.What is cash breakeven point?

c.What is financial breakeven point assuming 12% discount rate?