Question
Given the information below, calculate the accounting profit break-even point. Initial investment: $2,000 Fixed costs are $2,000 per year Variable costs: $8 per unit Depreciation:
Given the information below, calculate the accounting profit break-even point.
Initial investment: $2,000
Fixed costs are $2,000 per year
Variable costs: $8 per unit
Depreciation: $250 per year
Price: $20 per unit
Discount rate: 10%
Project life: 4 years
Tax rate: 21%
| a. | 143 units per year | |
| b. | 188 units per year | |
| c. | 100 units per year | |
| d. | 161 units per year |
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Frank Woods Business Accounting Volume 2
Authors: Frank Wood, Alan Sangster
13th Edition
1292085053, 9781292085050
