Financial Calculator Company Proposes to Invest $12 Million in a New

Multiple Choice

Financial Calculator Company proposes to invest $12 million in a new calculator making plant. Fixed costs are $3 million a year. A financial calculator costs $10 per unit to manufacture and can be sold for $30 per unit. If the plant lasts for 4 years and the cost of capital is 20%, what is the break-even level of annual rates? (Approximately) (Assume no taxes.)

A) 150,000 units
B) 342,290 units
C) 381,777 units
D) None of the above