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You are looking at a 10-year project that has the following pro forma income statement in each of the next 10 years. The initial outlay is $100,000, depreciation is a straight-line and pro forma results assume 10,000 of expected units sale. The firm's discount rate is 10%

Sales $250,000

Variable Cost $100,000

Fixed Costs $35,000

Depreciation $10,000

EBIT $105,000

Tax (20%) $21,000

Net income $84,000

A) What is the financial breakeven quantity of sales?

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