Given the following information, what is the financial break-even point? Initial investment = $300,000; variable cost = $120; fixed cost = $65,000; price = $150; life = six years; required return = 10%; depreciation = $50,000; salvage value of assets = $25,000; initial net working capital investment = $10,000. Ignore taxes.
A) 1,392 units
B) 2,600 units
C) 3,972 units
D) 4,005 units
E) 4,388 units
Correct Answer:
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