From the information below,calculate the accounting break-even point.
Initial investment: $2,000
Fixed costs are $2,000 per year
Variable costs: $6 per unit
Depreciation: $250 per year
Price: $20 per unit
Discount rate: 10%
Project life: 4 years
Tax rate: 34%
A) 88 units per year
B) 100 units per year
C) 143 units per year
D) 161 units per year
E) None of these.
Correct Answer:
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