What is the accounting break-even level of annual sales

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Reference no: EM13335764

The Solar Calculator Company proposes to invest $5 million in a new calculator-making plant that will depreciate on a straight-line basis. Fixed costs are $2 million per year. A calculator costs $5 per unit to manufacture and sells for $20 per unit. If the plant lasts for three years and the cost of capital is 12%, what is the accounting break-even level of annual sales?

Reference no: EM13335764

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