Your Company Is Considering a New Project with Estimated Depreciation

question 14

Multiple Choice

Your company is considering a new project with estimated depreciation of $630, fixed costs of $5,000, and total sales of $10,050. The variable cost per unit is estimated at $3.75. What is the accounting break-even level of production?

• A) 1,100 units
• B) 1,179 units
• C) 1,216 units
• D) 1,298 units
• E) 1,347 units