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Greenview Grahams, Inc, makes healthy snack crackers. Each case of crackers produced can be sold to a distributor for $29. The variable cost of producing
Greenview Grahams, Inc, makes healthy snack crackers. Each case of crackers produced can be sold to a distributor for $29. The variable cost of producing each case is $17. The company's cash-based fixed costs (such as managers' salaries, building rent, some components of insurance) total $2,240,000 per year. The machinery used in the manufacturing originally cost the company $3,605,000, and was expected to have a 7-year useful life. Greenview's managers feel that the weighted average cost of capital for the company's typical projects is 8.75% per year. What number of cases sold constitutes the company's annual Operating (also called Accounting) Break-Even Point? [in subsequent question 4 you will compute the annual Financial Break-Even Point.] A. 327,083.33 OB. 69,583.33 OC 143,750.00 O D. 59,891.30 OE. 229,583.33
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