What is the accounting break-even point

Reference no: EM131958019

Question: A company is considering a 5-year project that opens a new product line and requires an initial outlay of $75,000. The assumed selling price is $97 per unit, and the variable cost is $54 per unit. Fixed costs not including depreciation are $16,000 per year. Assume depreciation is calculated using stright-line down to zero salvage value. If the required rate of return is 11% per year, what is the accounting break-even point? (Answer to the nearest whole unit.)

Reference no: EM131958019

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