Break-even analysis

Given the following information:

A 6,260 _______ $58 $98,000 $22,000

B 770 $990 ______ $498,000 $99,000

C 1,980 $20 $14 $4,500 _______

D 1,980 $20 $8 ________ $15,000

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?