Kurt's Coffees Has a New Hot Drink in Mind That

Kurt's Coffees has a new hot drink in mind that is expected to generate sales of 24,000 units over its 2-year life.The initial cost for equipment is $69,500.This equipment will be depreciated straight-line to zero over two years and have no salvage value.The fixed costs are $17,800 and the contribution margin is $2.20.The tax rate is 35 percent and the discount rate is 14 percent.Should this new drink be pursued? Why or why not?

A) Yes;because the financial break-even quantity of 19,013.51 units is less than expected sales
B) Yes;because the financial break-even quantity of 18,648.20 units is less than expected sales
C) Yes;because the financial break-even quantity of 29,100.80 units is more than expected sales
D) No;because the financial break-even quantity of 19,013.51 units is less than expected sales
E) No;because the financial break-even quantity of 29,100.80 units is more than expected sales