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You are considering starting a new factory producing small electric heaters. Each unit will sell at a price of $65. The production cost of each

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You are considering starting a new factory producing small electric heaters. Each unit will sell at a price of $65. The production cost of each heater is $50. The fixed cost of production is $40000. This project has an economic life of 7 years. The project requires an investment of $285000 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 14 percent. The marginal corporate tax rate is 22 percent. Based on these assumptions, calculate the number of units at the operating cash flow break-even point. 1905.341906.951910.101901

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