Question
(Break-even analysis) Project Accounting Break-Even Point (in units) Price per Unit Variable Cost per Unit Fixed Costs Depreciation A 6,210 $53 $100,000 $25,000 B 730
(Break-even analysis)
Project | Accounting Break-Even Point (in units) | Price per Unit | Variable Cost per Unit | Fixed Costs | Depreciation | ||
---|---|---|---|---|---|---|---|
A | 6,210 | $53 | $100,000 | $25,000 | |||
B | 730 | $990 | $502,000 | $102,000 | |||
C | 1,960 | $22 | $14 | $5,000 | |||
D | 1,960 | $22 | $ 7 | $16,000 |
(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?
Question content area bottom
Part 1
a.Calculate the missing information for each of the above projects.
The price per unit for Project A is
$enter your response here.
(Round to the nearest cent.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started