Miniature Molding Is Planning to Introduce a Valve for Use

Multiple Choice

Miniature Molding is planning to introduce a valve for use in medical implants.Variable costs per unit are $250.The maximum price MM could charge is $325.Fixed costs associated with this product are $20,000,000.Depreciation expense of $2,500,000 is included in fixed costs.The worst-case forecast calls for sales of 240,000 valves, the best-case for $290,400.Will MM reach cash break-even in the worst-case scenario?

A) Sales will fall short of cash break-even by $8,666,667.
B) The product will exactly break even.
C) Sales will fall short of cash break-even by $2,000,025.
D) Sales will exceed cash break-even by $2,166,667.