What Is the Financial Break-Even Point? Price = $100 Per

Multiple Choice

What is the financial break-even point? Price = $100 per unit; variable cost = $24 per unit, fixed cost = $40,000 per year; depreciation = $10,000 per year. Assume a discount rate of 10%, project initial outlay of $100,000, project life of 10 years, and ignore taxes.

A) 527 units
B) 624 units
C) 658 units
D) 740 units
E) 1,130 units