An investment has the initial cash outflow of $210,000 for fixed assets that will be depreciated straight line to zero over four years, which is the life of the project.
The sales price is set at $19.95 a unit, the annual fixed costs are $237,000 and variable cost per unit is $8.87. The tax rate is 34% and the discount rate is 11%.
At what sales quantity per year will the investment break even on a financial basis?