What is project financial break-even point in units

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Reference no: EM131352734

Lindow's Limes invested $600,000 to develop a new, home seized lime juice machine. The variable costs were $30 per unit and fixed costs were $100,000. This project is expected to take 4 years to become marketable. The juice machines are expected to sell for $60 per package. The project's cost of capital is 15%.

a) what is the project's financial break-even point in units?

b) Once the juice machines have been on the market, people love them and there has been a 20% increase in sales. What is the percentage change in OCF ater the first year of sales?

Reference no: EM131352734

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