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%
Variable Cost $100,000
Fixed Costs $35,000
Tax (20%) $21,000
Net income $84,000
A) What is the financial breakeven quantity of sales?