Consider a Project with the Following Data: Accounting Break-Even Quantity

question 80

Multiple Choice

Consider a project with the following data: accounting break-even quantity = 29,000 units; cash break-even quantity = 16,250 units; life = 10 years; fixed costs = $203,000; variable costs = $24 per unit; required return = 14 percent; depreciation = straight line.Ignoring the effect of taxes,what is the financial break-even quantity?

• A)38,723 units
• B)39,201 units
• C)39,458 units
• D)39,624 units
• E)40,693 units