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 $26.50 per unit.How many units must the firm sell to break-even on a cash basis?

A) 6,521 units
B) 8,256 units
C) 8,510 units
D) 9,667 units
E) 10,842 units