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X company proposes to invest $12 million in a new printer-making plant that will depreciate on a straight-line basis. Fixed costs are $3 million per
X company proposes to invest $12 million in a new printer-making plant that will depreciate on a straight-line basis. Fixed costs are $3 million per year. A printer costs $61 per unit to manufacture and sells for $199 per unit. If the plant lasts for five years and the cost of capital is 18 percent, what is the accounting break-even level of annual sales? (Assume no taxes.)
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