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Consider the following cases: Case Unit Price Unit Variable Cost Fixed Costs Depreciation 1 $ 3,000 $ 2,220 $ 15,000,000 $ 5,400,000 2 40 28
| Consider the following cases: |
| Case | Unit Price | Unit Variable Cost | Fixed Costs | Depreciation |
| 1 | $ 3,000 | $ 2,220 | $ 15,000,000 | $ 5,400,000 |
| 2 | 40 | 28 | 15,000 | 36,000 |
| 3 | 8 | 3.4 | 800 | 560 |
| Ignore any tax effects in calculating the cash break-even. |
| 1a. Calculate the cash break-even point of Case 1. |
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| 1b. Calculate the accounting break-even point of Case 1. |
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| 2a. Calculate the cash break-even point of Case 2. |
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| 2b. Calculate the accounting break-even point of Case 2. |
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| 3a. Calculate the cash break-even point of Case 3. |
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| 3b. Calculate the accounting break-even point of Case 3. |
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Enterprise Risk Management In Finance
Authors: David L. Olson, Desheng Dash Wu
1st Edition
1349691038, 978-1349691036
