Assume a Project Has Estimated Fixed Costs of $61,200,variable Costs

Multiple Choice

Assume a project has estimated fixed costs of $61,200,variable costs per unit of $84.29,a selling price of $199,and an initial cost of $402,000 for fixed assets.Depreciation is straight-line to zero over the project's 4-year life.The tax rate is 30 percent,and the discount rate is 12 percent.What is the financial breakeven point?

A) 1,422 units
B) 1,806 units
C) 1,366 units
D) 1,698 units
E) 1,228 units