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Dmitry_Shevchenko [17]
2 years ago
7

Company FIN3610-FTRA has a six-year project that requires an initial investment of $30,000. Every year, the project will pay fix

ed costs of $20,000 to produce the product. Also, we know that the variable costs per unit will be $36, and the price per unit will be $58. The required return is 10%. Please calculate the financial break-even quantity for this project. (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
Business
1 answer:
lara31 [8.8K]2 years ago
4 0

Answer:

909.09

Explanation:

Breakeven quantity are the number of  units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

$20,000 / 58 - 36 = 909.09

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