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Tom is evaluating a project that costs $950,000, has a five-year life, and has no salvage value. Assume that depreciation is straight-line to zero over
Tom is evaluating a project that costs $950,000, has a five-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 90,000 units per year, price per unit is $65, variable cost per unit is $30, and fixed costs are $2 million per year. The tax rate is 21%, and the required rate of return on the project is 12%.
Calculate the accounting break-even number of units for the project. (Round to 2 decimals)
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