You are considering starting a new factory producing small electric heaters. Each unit will sell at a price of $17. The production cost of each heater is $12. The fixed cost of production is $18000. This project has an economic life of 8 years. The project requires an investment of $185000 in plants and equipment. This equipment will be depreciated using a straight line depreciation method to a salvage value of zero. The required rate of return for the project is 11 percent. The marginal corporate tax rate is 21 percent. Based on these assumptions, calculate the number of units of production at the accounting (net profit) break-even point. 8216821482158225 QUESTION 4 If the sales of a company grows by 25 percent in a year, how much its gross profit will increase? Assume that company have a ROE =15%, degree of operating leverage =3, and plowback ratio =50%. 75%8.33%7.5%28%