A New Project Will Allow You To Sell A New Product For 75 Each Variable Costs Are 45 Each And Total Fixed Costs Incl 1 (61.03 KiB) Viewed 36 times
A New Project Will Allow You To Sell A New Product For 75 Each Variable Costs Are 45 Each And Total Fixed Costs Incl 2 (45.89 KiB) Viewed 36 times
A new project will allow you to sell a new product for $75 each. Variable costs are $45 each and total fixed costs (including depreciation) are $250,000 per year. The initial investment required is a $175,000 capital expenditure for equipment and that equipment has a 4-year life (assume the firm depreciates straight-line to zero). How many units would you have to sell annually to recover your cash expenditures (i.e., what is the "cash break-even quantity")? O 2,500 O 14,167 O 8,333 O 6,875 O 5,833
A new project will allow you to sell a new product for $83 each. Variable costs are $55 per item and fixed operating costs are $75,000 per year. If there is no initial investment required, how many units would you have to sell annually to break-even in an accounting sense (i.e., what is the “accounting break-even quantity")? O 904 O 1,364 O 1,339 O 4,970 O 2,679
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