An investment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight-line to zero over the 4-year life of the project.The sales price is $19.95 a unit,annual fixed costs are $237,000,the variable costs per unit are $8.87,and the tax rate is 23 percent.At what annual sales quantity will the investment break even on an accounting basis?

Question

Quizplus · Accepted Answer

The Answer of An investment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight-line to zero over the 4-year life of the project.The sales price is $19.95 a unit,annual fixed costs are $237,000,the variable costs per unit are $8.87,and the tax rate is 23 percent.At what annual sales quantity will the investment break even on an accounting basis?

An Investment Has an Initial Cash Outflow of $210,000 for Fixed