What is the financial break-even quantity

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We are evaluating a project that costs $987,000, has a 9-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 104,962 units per year. Price per unit is $46, variable cost per unit is $38, and fixed costs are $921,000 per year. The tax rate is 37%, and we require a 12 % return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-14 percent.

What is the financial break-even quantity? (Round answer to the nearest whole number)

Reference no: EM132685807

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