Miller Tools Is Considering a New Project That Requires an Initial

Multiple Choice

Miller Tools is considering a new project that requires an initial investment of $81,300 for fixed assets,which will be depreciated straight-line to zero over the project's 3-year life.The project is expected to have fixed costs of $37,600 a year,and a contribution margin of $18.40.The tax rate is 34 percent and the discount rate is 15 percent.What is the financial breakeven point?

A) 2,950 units
B) 4,217 units
C) 2,200 units
D) 2,483 units
E) 3,667 units