From the information below, calculate the accounting break-even point. Fixed costs are $2,000/year. (Initial investment is $2,000.)
Variable costs: $6/unit.
Depreciation: $250/year.
Price: $20/unit.
Discount rate: 10%.
Project life: 4 years.
Tax rate: 34%.
A) 88 units/year.
B) 161 units/year.
C) 143 units/year.
D) 100 units/year.
Correct Answer:
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