You Are Considering a New Project

question 147

Multiple Choice

You are considering a new project. The project has projected annual depreciation of $11,600, total annual fixed costs of $29,001.50, and annual total sales of $46,900. The variable cost per unit is $5.70. What is the accounting break-even level of production?

• A) 1,015
• B) 1,085
• C) 1,105
• D) 1,125
• E) 1,215

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Definitions:

Quality Cost Report

A report detailing the costs associated with preventing, detecting, and rectifying product issues to ensure quality.

Eagleson Company

A hypothetical or unspecified business entity used for illustrative purposes.

Prevention Cost

Expenses incurred to prevent defects in products or services before they occur.

Quality Cost Report

A report that details the costs associated with ensuring product or service quality, including prevention, appraisal, and failure costs.