The Marvel Mfg. Company is considering whether or not to construct a new robotic production facility. The cost of this new facility is

$576,000

and it is expected to have a six-year life with annual depreciation expense of

$96,000

and no salvage value. Annual sales from the new facility are expected to be

2,010

units with a price of

$1,060

per unit. Variable production costs are

$590

per unit, and fixed cash expenses are

$78,000

per year.

a. Find the accounting and the cash break-even units of production.

b. Will the plant make a profit based on its current expected level of operations?

c.Will the plant contribute cash flow to the firm at the expected level of operations?

Question content area bottom

Part 1

a.The accounting break-even units of production is

enter your response here

units.(Round to the nearest whole number.)