Kurt Neal and Son Is Considering a Project with a Discounted

Multiple Choice

Kurt Neal and Son is considering a project with a discounted payback just equal to the project's life. The projections include a sales price of $11, variable cost per unit of $8.50, and fixed costs of
$4,500. The operating cash flow is $6,200. What is the break- even quantity?

A) 1,800 units
B) 2,480 units
C) 3,057 units
D) 3,750 units
E) 4,280 units