Expert Answers

Given the following information:

Project Accounting Break-even Points (in units) Price per unit Variable Cost per Unit Fixed costs Depreciation

A 6,210 -------- $54 $103,000 $22,000

B 750 $1,050 ------ $498,000 $98,000

C 1,980 $22 $15 $4,900 -----

D 1,980 $22 $8 ------ $13,000

Calculate the missing information for each of the above projects.

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.

Calculate the cash break-even for each of the above of the above projects. What do the differences in accounting and cash break-even tell you about the four projects?

The price per unit for Project A is $ _____. (Round to the nearest cent.)