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Please answer all of part C (Related to Checkpoint 13.4) (Break-even analysis) Accounting Break-Even Price Variable Cost Project Point (in units) per Unit per Unit
Please answer all of part C
(Related to Checkpoint 13.4) (Break-even analysis) Accounting Break-Even Price Variable Cost Project Point (in units) per Unit per Unit Fixed Costs A 6,210 $53 S102,000 B 730 $960 $502,000 1,970 $25 $15 $4,600 D 1,970 $25 $ 7 (Click on the icon in order to copy its contents into a spreadsheet.) Depreciation $23,000 $102,000 $17.000 a. Calculate the missing information for each of the above projects. b. Note that Projects C and D share the same accounting break-even. If sales are above the break-even point, which project would you prefer? Explain why. c. Calculate the cash break-even for each of the above projects. What do the differences in accounting and cash break-even tell you about the four projects? a. Calculate the missing information for each of the above projects. The price per unit for Project A is $ 73.13. (Round to the nearest cent.) The variable cost per unit for Project B is $ 132.60. (Round to the nearest cent.) The depreciation for Project C is $ 15100. (Round to the nearest dollar.) The fixed costs for Project Dis $ 18460. (Round to the nearest dollar.) b. Note that Projects C and D share the same accounting break-even. If sales are above the break-even point, which project would you prefer? Explain why. (Select from the drop-down menus.) We should prefer Project D because the contribution margin (Price per unit - Variable cost per unit) of project Dis more which causes overall profit to increase. c. Calculate the cash break-even for each of the above projects. The cash break-even for Project Ais units. (Round to the nearest whole number.)Step by Step Solution
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