1. Oscar Inc. has a new product priced at $500 per unit. Variable cost is $250...

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1. Oscar Inc. has a new product priced at $500 per unit.Variable cost is $250 per unit, and fixed costs are $200,000 peryear. Quantity sold is expected to be 20,000 units per year. Thenew product will require an initial investment of $14 million,depreciation will be straight-line to zero for seven years, andsalvage at the end of seven years is expected to be $1 million.Demand for the product is expected to be stable and to continue forseven years. The required rate of return on this new product lineis 12%. What is the cash break-even quantity?
Select one:
a. 800
b. 880
c. 8,000
d. 8,800
e. 88,000
2. Oscar Inc. has a new product priced at $500 per unit.Variable cost is $250 per unit, and fixed costs are $200,000 peryear. Quantity sold is expected to be 20,000 units per year. Thenew product will require an initial investment of $14 million,depreciation will be straight-line to zero for seven years, andsalvage at the end of seven years is expected to be $1 million.Demand for the product is expected to be stable and to continue forseven years. The required rate of return on this new product lineis 12%. Ignoring taxes, what is the accounting break-evenquantity?
Select one:
a. 800
b. 880
c. 8,000
d. 8,800
e. 88,000

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1. Oscar Inc. has a new product priced at $500 per unit.Variable cost is $250 per unit, and fixed costs are $200,000 peryear. Quantity sold is expected to be 20,000 units per year. Thenew product will require an initial investment of $14 million,depreciation will be straight-line to zero for seven years, andsalvage at the end of seven years is expected to be $1 million.Demand for the product is expected to be stable and to continue forseven years. The required rate of return on this new product lineis 12%. What is the cash break-even quantity?Select one:a. 800b. 880c. 8,000d. 8,800e. 88,0002. Oscar Inc. has a new product priced at $500 per unit.Variable cost is $250 per unit, and fixed costs are $200,000 peryear. Quantity sold is expected to be 20,000 units per year. Thenew product will require an initial investment of $14 million,depreciation will be straight-line to zero for seven years, andsalvage at the end of seven years is expected to be $1 million.Demand for the product is expected to be stable and to continue forseven years. The required rate of return on this new product lineis 12%. Ignoring taxes, what is the accounting break-evenquantity?Select one:a. 800b. 880c. 8,000d. 8,800e. 88,000