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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
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.)
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