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

question 22

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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Definitions:

Human Life Span

The maximum duration of life that human beings are known to live under optimal conditions.

Life Expectancy

The average number of years an individual is expected to live based on demographic factors, such as age, gender, and health conditions.

Aging

refers to the process of becoming older or more mature, involving biological, psychological, and social changes over time.

Psychiatric Disorder

A mental illness diagnosed by a medical or mental health professional that significantly interferes with an individual's cognitive, emotional, or social abilities.