Miller Tools Is Considering a New Project That Requires an Initial

question 71

Multiple Choice

Miller Tools is considering a new project that requires an initial investment of $81,300 for fixed assets,which will be depreciated straight-line to zero over the project's 3-year life.The project is expected to have fixed costs of $37,600 a year,and a contribution margin of $18.40.The tax rate is 34 percent and the discount rate is 15 percent.What is the financial breakeven point?

• A)2,950 units
• B)4,217 units
• C)2,200 units
• D)2,483 units
• E)3,667 units

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Definitions:

Biological Diversity

The variability among living organisms from all sources including terrestrial, marine, and other aquatic ecosystems and the ecological complexes of which they are part; essentially another term for biodiversity.

Endangered Species

Species that are at risk of extinction due to a rapid decline in population or habitat, often caused by human activities.

Vital Ecosystems

Importantly diverse and productive ecological systems that are crucial for the sustainability of life and the ecological balance on Earth.

Biological Diversity

The variety of life in the world or in a particular habitat or ecosystem, including species diversity, ecosystem diversity, and genetic diversity.