Multiple Choice
Kurt's Interiors is considering a project with a sales price of $11,variable cost per unit of $8.50,and annual fixed costs of $134,500.The tax rate is 23 percent and the discount rate is 14 percent.The project requires $224,000 of fixed assets that will be worthless at the end of the 4-year project.What is the present value break-even point in units per year if the firm uses straight line depreciation?
A) 88,808
B) 92,480
C) 93,057
D) 93,750
E) 87,046
Correct Answer:
Verified
Correct Answer:
Verified
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