A project costs $724,000, has an eight-year life, and has no salvage value. Assume that...
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Accounting
A project costs $724,000, has an eight-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 75,000 units per year. Price per unit is $39, variable cost per unit is $23, and fixed costs are $850,000 per year. The tax rate is 35%, and we require a 15% return on this project. What is the accounting break-even point?
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