The Highlight Company is reviewing a proposed 6-year project with an initial cost of $687,402. The annual fixed costs ar

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The Highlight Company is reviewing a proposed 6-year project
with an initial cost of $687,402. The annual fixed costs are
$92,800, the variable cost per unit is $49.79, and the sales price
per unit is $89. The tax rate is 21 percent and the discount rate
is 12 percent. All assets are depreciated straight-line over the
life of the project. What is the economic break-even point in units
per year?
Hint: Equivalent Annual Cost (EAC) = Initial Investment / 6-year
annuity factor @ 12%
= $687,402 / 4.1114073235
= $167,193.85 approx.
Group of answer choices
6,747 units
8,541 units
5,289 units
6,103
6,988 units