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

question 65

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 financial 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:

Dividend Per Share

The amount of dividend that a company pays out to its shareholders for each share they own.

Return on Equity

An indicator of a company's financial performance, showing the amount of profit generated per dollar of shareholders' investment.

Required Return

The minimum expected return an investor demands for investment in a specific asset, considering its risk profile.

Earnings

The profit a company makes after deducting its operating expenses, taxes, and costs from its revenue.