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Thompson's Has Determined That a New Project Has Expected Fixed

Question 78

Multiple Choice

Thompson's has determined that a new project has expected fixed costs of $132,378,a contribution margin of $36.20,and a tax rate of 21 percent.The investment has an initial cost of $548,000 that will be depreciated straight-line to zero over the 5-year life of the project.What is the expected present value break-even point in units per year if the discount rate is 15 percent?


A) 8,569
B) 9,046
C) 9,331
D) 9,849
E) 9,615

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