Amount of fixed assets required for project


The accounting break-even production quantity for a project is 12,320 units. The fixed costs are $216,000 and the contribution margin per unit is $28. The fixed assets required for the project will be depreciated on straight-line basis to zero over the project's 5-year life. What is the amount of fixed assets required for this project?

A. $325,920

B. $644,800

C. $748,500

D. $1,080,000

E. $1,629,600

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Finance Basics: Amount of fixed assets required for project
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