Rita's Flowers Is Considering a 3-Year Project with a Discount

Multiple Choice

Rita's Flowers is considering a 3-year project with a discount rate of 12 percent,a tax rate of 34 percent,and an initial cost of $12,000 for fixed assets.The selling price is estimated at $22 a unit based on variable costs per unit of $6.20 and fixed costs of $2,280.Depreciation is straight-line to zero over 3 years.What is the accounting breakeven point?

A) 262 units
B) 301 units
C) 492 units
D) 397 units
E) 406 units