Cantor's has been busy analyzing a new project. Management has determined that the new project...
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Finance
Cantor's has been busy analyzing a new project. Management has determined that the new project requires an initial investment in fixed assets of $1.8 million, which will be depreciated over six years with no expected salvage value. Assume no change in net working capital. The annual fixed costs are $345,000 and the variable cost will be $420 per unit and a sale price of $515 per unit. The tax rate is 21 percent and the required rate of return is 12 percent. What is the accounting break even quantity?
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