A Project Requires an Initial Equipment Purchase of $480,000, Which

Multiple Choice

A project requires an initial equipment purchase of $480,000, which will be depreciated straight- line to zero over the life of the project. The equipment will have no salvage value. Annual fixed
Costs are projected at $266,800. The selling price per unit is $9.90 with a variable cost per unit of
$6) 65. The project has a 6-year life and a required rate of return of 12%. What is the accounting
Break-even quantity if taxes are ignored?

A) 82,092
B) 91,538
C) 106,708
D) 109,813
E) 112,634