Computing the cash break-even level of output

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Computing the cash break -even level of output

You are considering a new product launch. The project will cost $870,000, have a 4-year life, and have no salvage value; depreciation is straight -line to zero. Sales and projected at 210 units per year; price per unit will be $20,000. Variable cost per unit will be $16,000, and fixed costs will be $348,000 per year. The required return on the project is 15 percent, and the relevant tax rate is 36 percent.
The cash break-even level of output for this project (ignoring taxes) is __________ units. (Round your answers to 2 decimal places, e.g. 32.16)

Reference no: EM1312737

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