Question
Consider the following cases: Case Unit Price Unit Variable Cost Fixed Costs Depreciation 1 $ 2,000 $ 1,280 $ 16,000,000 $ 5,760,000 2 41 25.83
Consider the following cases: Case Unit Price Unit Variable Cost Fixed Costs Depreciation 1 $ 2,000 $ 1,280 $ 16,000,000 $ 5,760,000 2 41 25.83 16,000 27,200 3 5 2 1,200 780 Ignore any tax effects in calculating the cash break-even. Requirement 1: (a) Calculate the cash break-even point of Case 1. (Do not round your intermediate calculations.) (b) Calculate the accounting break-even point of Case 1. (Do not round your intermediate calculations.) Requirement 2: (a) Calculate the cash break-even point of Case 2. (Do not round your intermediate calculations.) (b) Calculate the accounting break-even point of Case 2. (Do not round your intermediate calculations.) Requirement 3: (a) Calculate the cash break-even point of Case 3. (Do not round your intermediate calculations.) (b) Calculate the accounting break-even point of Case 3. (Do not round your intermediate calculations.)
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