What Is the Cash Break-Even Point? Price = $100 Per

question 416

Multiple Choice

What is the cash break-even point? Price = $100 per unit; variable cost = $24 per unit, fixed cost = $40,000 per year; depreciation = $10,000 per year. Assume a discount rate of 10%, project initial outlay of $100,000, project life of 10 years, and ignore taxes.

• A) 527 units
• B) 624 units
• C) 658 units
• D) 741 units
• E) 1,130 units

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