Scorpio Inc. is a seafood company specializing in crayfish. Each pound of crayfish cost $25 to produce and can be sold for $100. The company has fixed overhead costs of $300,000 per year, and can claim depreciation of $50,000 per year. What is the cash break-even quantity of sales for Scorpio Inc.?

Multiple Choice

• 4,000 pounds
• 2,000 pounds
• 3,334 pounds
• 2,400 pounds
• 12,000 pounds