The Motor Works Is Considering an Expansion Project with Estimated

Multiple Choice

The Motor Works is considering an expansion project with estimated annual fixed costs of $71,000, depreciation of $38,500, variable costs per unit of $17.90 and an estimated sales price of $28 per unit. How many units must the firm sell to break-even on a cash basis?

A) 6,521 units
B) 7,030 units
C) 7,510 units
D) 9,667 units
E) 10,842 units