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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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