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Cotter Pins, Inc. is trying to determine what the selling price of a new product should be if the project is to break-even on a
Cotter Pins, Inc. is trying to determine what the selling price of a new product should be if the project is to break-even on a cash basis at a quantity of 1,900 units. The projections include fixed costs of $3,800, variable costs per unit of $8.64, and a depreciation expense of $620. What is the price they should charge? A) $10.64 B) $10.97 C) $11.57 D) $11.74
Northern Technology manufactures a product with a degree of operating leverage of 2.5. If the fixed costs are $800 and the depreciation expense is $430 what is the operating cash flow of this project? | ||||
A) | $246.67 | |||
B) | $320.00 | |||
C) | $533.33 | |||
D) | $820.00 |
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