Given the Following Information, What Is the Financial Break-Even Point

question 70

Multiple Choice

Given the following information, what is the financial break-even point? Initial investment = $300,000; variable cost = $120; fixed cost = $65,000; price = $150; life = six years; required return = 10%; depreciation = $50,000; salvage value of assets = $25,000; initial net working capital investment = $10,000. Ignore taxes.

• A) 1,392 units
• B) 2,600 units
• C) 3,972 units
• D) 4,005 units
• E) 4,388 units

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