Question
Consider the following cases: Case Unit Price Unit Variable Cost Fixed Costs Depreciation 1. $ 5,000 $ 3,800 $ 17,000,000 $ 7,140,000 2. $ 37
Consider the following cases: Case Unit Price Unit Variable Cost Fixed Costs Depreciation
1. $ 5,000 $ 3,800 $ 17,000,000 $ 7,140,000
2. $ 37 $ 25.16 $ 17,000 $ 39,100
3. $10 $ 4.1 $ 1,900 $ 1,045
Ignore any tax effects in calculating the cash break-even.
1a. Calculate the cash break-even point of Case 1.
1b. Calculate the accounting break-even point of Case 1.
2a. Calculate the cash break-even point of Case 2.
2b. Calculate the accounting break-even point of Case 2.
3a. Calculate the cash break-even point of Case 3.
3b. Calculate the accounting break-even point of Case 3.
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