What is the accounting break-even point

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Reference no: EM132185236

You are considering investing in a project that cultivates abalone for sale to local restaurants. The discount rate for the company is 15%, the initial investment in equipment is $360,000, and the project's life is 7 years. The equipment is depreciated on a straight line basis over the project's live ($51,429 per year). Use the following information:

Price per unit  $80.00

Variable cost per unit $5.40

Fixed cost per year  $750,000.00

Depreciation $51,429.00

Tax rate 35%

What is the accounting break-even point? and What is the financial break-even point?

Reference no: EM132185236

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