What is the approximate break-even level

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Reference no: EM13274978

Calculator Company proposes to invest $5 million in a new calculator making plant. Fixed costs are $2 million a year. A calculator costs $5/unit to manufacture and can be sold for $20/unit. If the plant lasts for 3 years and the cost of capital is 12%, what is the approximate break-even level (accounting) of the annual sales? (Assume no taxes). (approximately) a. $133,334 units b. $272,117 units c. $244,444 units d. None of these

Reference no: EM13274978

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