Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accounting Break-Even Price Variable Cost Project Point (in units) per Unit per Unit Fixed Costs Depreciation 8.270 355 599,000 $26,000 B 770 $1.010 $502,000 S103,000

image text in transcribedimage text in transcribed

Accounting Break-Even Price Variable Cost Project Point (in units) per Unit per Unit Fixed Costs Depreciation 8.270 355 599,000 $26,000 B 770 $1.010 $502,000 S103,000 1.950 $20 $14 $4,800 D 1.950 $20 $ 5 $13,000 (Click on the icon in order to copy its contents into a spreadsheet) a. Calculate the missing information for each of the above projects b. Note that Projects C and D share the same accounting break-even. If sales are above the break-even point, which project would you prefer? Explain why c. Calculate the cash break-even for each of the above projects. What do the differences in accounting and cash break-even tell you about the four projects? a Calculate the missing information for each of the above projects. The price per unit for Project Ais S 72.42' (Round to the nearest cent.) The variable cost per unit for Project Bis 5 164.50 (Round to the nearest cent.) The depreciation for Project Cis $ 7.080 (Round to the nearest dollar) The fixed costs for Project Dis $ 10,440" (Round to the nearest dollar) b. Note that Projects and share the same accounting break-even. If sales are above the break-even point, which project would you prefer? Explain why. (Select from the drop-down menus.) We should prefer Project D because the contribution margin (Price per unit-Variable cost per unit) of project D is more which causes overall profit to increase c. Calculate the cash break-even for each of the above projects. The cash break-even for Project Ais 4,848 units. (Round to the nearest vihole number.) The cash break-even for Project Bis 615 units. (Round to the nearest whole number.) The cash break-even for Project is 783 units. (Round to the nearest whole number.) The cash break-even for Project Dis 748 units. Round to the nearest whole number.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions