What is the financial break-even quantity

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Question - XYZ Inc. has a project with an accounting break-even quantity of 28,700 units, a life of 4 years. The fixed production costs are $178,000 and variable costs are $18.40 per unit. The project needs an investment of $500,000 in equipment which will be depreciated straight-line to zero over the life of the project. The equipment will be worthless in 4 years. No working capital investment will be required for the project. If the required return is 14 percent, and there are no taxes, what is the financial break-even quantity?

Reference no: EM132983633

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