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Miller Tools Is Considering a New Project That Requires an Initial

Question 80

Multiple Choice

Miller Tools is considering a new project that requires an initial investment of $82,600 for fixed assets,which will be depreciated straight-line to zero over the project's 4-year life.The project is expected to have fixed costs of $41,200 a year and a contribution margin of $22.80.The tax rate is 34 percent and the discount rate is 10 percent.What is the financial break-even point?


A) 2,949.91 units
B) 3,072.10 units
C) 2,200.01 units
D) 2,483.33 units
E) 2,666.67 units

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