Opens new product line and requires initial outlay

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Reference no: EM132017309

A company is considering a 5-year project that opens a new product line and requires an initial outlay of $77,000. The assumed selling price is $92 per unit, and the variable cost is $58 per unit. Fixed costs not including depreciation are $25,000 per year. Assume depreciation is calculated using stright-line down to zero salvage value. If the required rate of return is 14% per year, what is the financial break-even point? (Answer to the nearest whole unit.

Reference no: EM132017309

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