The Solar Calculator Company Proposes to Invest $5 Million in a New

Multiple Choice

The Solar Calculator Company proposes to invest $5 million in a new calculator-making plant that will depreciate on a straight-line basis.Fixed costs are $2 million per year.A calculator costs $5 per unit to manufacture and sells for $20 per unit.If the plant lasts for three years and the cost of capital is 12%,what is the accounting break-even level of annual sales? (Assume no taxes.)

A) 133,334 units
B) 272,117 units
C) 244,444 units
D) 466,666 unitsFixed costs and depreciation equal $2M and $1.67M per year,respectively.Let X = the annual sales rate.Given a price of $20 and variable cost of $5,