3. You are considering a new project the initial investment is $7,000. The required rate of return is 5%. The life of the project is 10 yrs. Straight-line depreciation, fixed costs of $6,000, and total sales of $12,000. The variable cost per unit is $4.20. The tax rate is 30%. What is the finance break-even level of production?

1. 1,260 units
2. 1,190 units
3. 1,180 units
4. 1,210 units