What is the accounting breakeven units

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Spencer Tools would like to offer a special product to its best customers. It requires $55,000 of investment for new equipment. The fixed costs are estimated at $21,000. The product sells for $22.50 per unit and variable cost is $10 per unit.

a) Using a 5-year depreciation schedule, what's the depreciation?

b) What is the accounting breakeven units?

c) What's the cash break-even units?

d) What's the financial breakeven units?

e) What's the OCF (payment) when NPV =0?

Reference no: EM132516061

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