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. Sycamore Leisure, Inc. makes wooden croquet sets suitable for sale at discount stores. Each set can be sold to a sporting goods distributor for
. Sycamore Leisure, Inc. makes wooden croquet sets suitable for sale at discount stores. Each set can be sold to a sporting goods distributor for $37. The variable cost of producing each set is $26. The company's cash-based fixed costs (such as managers' salaries, building rent, some components of utilities and insurance) total $5,250,000 per year. The machinery used in the manufacturing originally cost the company $8,800,000, and was expected to have an 8-year useful life. Sycamore's managers feel that the weighted average cost of capital for the company's typical investment projects is 7.6% per year. What number of sets sold constitutes the company's annual Operating (also called Accounting) Break-Even Point? [In subsequent question 9 you will compute the annual Financial Break-Even Point.] A. 159,659.09 B. 377,272.73 C. 859,659.09 D. 65,873.02 E. 577,272.73 . Sycamore Leisure, Inc. makes wooden croquet sets suitable for sale at discount stores. Each set can be sold to a sporting goods distributor for $37. The variable cost of producing each set is $26. The company's cash-based fixed costs (such as managers' salaries, building rent, some components of utilities and insurance) total $5,250,000 per year. The machinery used in the manufacturing originally cost the company $8,800,000, and was expected to have an 8-year useful life. Sycamore's managers feel that the weighted average cost of capital for the company's typical investment projects is 7.6% per year. What number of sets sold constitutes the company's annual Financial Break-Even Point? [In previous question 8 you computed the annual Operating or Accounting Break- Even Point.] A. 621,145.45 B. 1,037,239.89 C. 614,378.57 D. 218,901.94 E. 340,166.89
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