A Project Requires an Initial Equipment Purchase of $480,000, Which

question 332

Multiple Choice

A project requires an initial equipment purchase of $480,000, which will be depreciated straight-line to zero over the life of the project. The equipment will have no salvage value. Annual fixed costs are projected at $266,800. The selling price per unit is $9.90 with a variable cost per unit of $6.65. The project has a 6-year life and a required rate of return of 12%. What is the accounting break-even quantity if taxes are ignored?

• A) 82,092
• B) 91,538
• C) 106,708
• D) 109,813
• E) 112,634

---

Definitions:

Managerial

Pertaining to the duties and activities involved in managing an organization or part of it.

Print media

The segment of the media industry that disseminates information through printed materials, such as newspapers, magazines, and books.

Detail

The small parts or features of something considered individually, often contributing to the overall quality or functionality of the item.

Media types

Various categories of communication tools and platforms, such as print, broadcast, digital, and social media.