A Project Has the Following Estimated Data: Price = $80

question 290

Multiple Choice

A project has the following estimated data: price = $80 per unit; variable costs = $55 per unit; fixed costs = $25,000; required return = 15%; initial investment = $44,000; life = five years. What is the cash break-even quantity?

• A) 1,000 units
• B) 1,352 units
• C) 1,525 units
• D) 1,775 units
• E) 1,950 units

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Definitions:

Personal Defense

Strategies, methods, or actions employed by an individual to protect themselves from harm.

HDC

Stands for Holder in Due Course, a term in commercial law referring to a party who acquires a negotiable instrument in good faith and for value, thus having certain protections.

Faulty Product

A product that has defects, malfunctions, or does not meet established standards of quality or safety.

Consumer

An individual who purchases goods or services for personal use.