Question
Break-even analysis Given the following information: Acctng price Variable Fixed Depreciation A 6,280 _______ $52 $97,000 $24,000 B 740 $1,010 ______ $495,000 $100,000 C 2,000
Break-even analysis
Given the following information:
Acctng price Variable Fixed Depreciation
A 6,280 _______ $52 $97,000 $24,000
B 740 $1,010 ______ $495,000 $100,000
C 2,000 $21 $15 $4,900 _______
D 2,000 $21 $5 ________ $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?
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