(Break-even analysis)
Project
Accounting
Break-Even
Point (in units)
Price
per Unit
Variable Cost
per Unit
Fixed Costs
Depreciation
A
6, 230
$52
$102,000
$26,000
B
760
$1,000
$499,000
$103,000
C
1,970
$25
$13
$5,000
D
1,970
$25
$7
$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...