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The Highlight Company Has the Following Cost Information on Its

Question 73

Multiple Choice

The Highlight Company has the following cost information on its new prospective project. Calculate the accounting break-even point.
Initial investment: $800
Fixed costs: $300 per year
Variable costs: $4 per unit
Depreciation: $140 per year
Price: $8 per unit
Discount rate: 12%
Project life: 5 years
Tax rate: 34%


A) 62 units per year
B) 75 units per year
C) 100 units per year
D) 103 units per year
E) 110 units per year

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