Expert Solutions

(Break-even analysis) Given the following information:

Project Accounting Break-even point (in units) Price per unit Variable Cost per unit Fixed Costs Depreciation

A 6,260 ----- $53 $99,000 $25,000

B 780 $1,010 ------ $495,000 $99,000

C 1,970 $23 $13 $5,000 -------

D 1,970 $23 $8 ------ $15,000

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 $------------. (Round to the nearest cent).