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
Correct Answer:
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