Multiple Choice
Calculator Company proposes to invest $5 million in a new calculator making plant. Fixed costs are $2 million a year. A calculator costs $5/unit to manufacture and can be sold for
$20/unit. If the plant lasts for 3 years and the cost of capital is 12%, what is the approximate break-even level (accounting) of annual sales? (Assume no taxes.) (approximately)
A) $133,334 units
B) $272,117 units
C) $244,444 units
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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