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Sonic, Inc. is considering an investment project with the following information: Initial investment: $2,100,000; Fixed costs: $420,000; Variable costs: $12.50 per unit; Selling price: $34.70

Sonic, Inc. is considering an investment project with the following information: Initial investment: $2,100,000; Fixed costs: $420,000; Variable costs: $12.50 per unit; Selling price: $34.70 per unit; Discount rate: 12 percent; Project life: 6 years; Tax rate: 25 percent. Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point?

35,974

38,006

41,807

44,341

47,522

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