Question
Accounting details for different projects within the Gauge Operations Corp can be found below. (12 points) Project Accounting Break-Even Point in Units Price per Unit
Accounting details for different projects within the Gauge Operations Corp can be found below. (12 points) Project Accounting Break-Even Point in Units Price per Unit Variable Cost per Unit Fixed Costs Depreciation Ruby 6,250 ? $55 $100,000 $25,000 Sapphire 750 $1,000 ? $500,000 $100,000 Diamond 2,000 $20 $15 $5,000 ? Emerald 2,000 $20 $5 ? $15,000 Calculate the missing information for each of the above projects. (5 points) Ruby price per unit Sapphire variable cost per unit Diamond fixed costs Emerald depreciation Note that Projects C and D share the same accounting break-even. If sales are above the break-even point, which project do you prefer? Explain why.
Calculate the cash break-even for each of the above projects. What do the differences in accounting break-even and cash break-even tell you about the four projects?
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