The Quorum Company Has a Prospective 6-Year Project That Requires

Multiple Choice

The Quorum Company has a prospective 6-year project that requires initial fixed assets costing $962,000,annual fixed costs of $403,400,variable costs per unit of $123.60,a sales price per unit of $249,a discount rate of 14 percent,and a tax rate of 21 percent.What is the present value break-even point in units per year?

A) 6,081
B) 4,995
C) 5,375
D) 6,144
E) 5,852