Find the cash break-even quantity

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Reference no: EM13814666

Consider the following project which costs $1,000,000 with a salvage value of $50,000 in 5 years. The project will produce a new type of running shoes which will be sold for $235 and have variable costs of $95 per pair. The company has fixed costs of $1,500,000 and a required return on projects of 12.5%. The company uses straight-line depreciation method. Find the cash break-even quantity.

a. 12071

b. 8,985

c. 13.125

d. 10714

Reference no: EM13814666

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