A Project Has a Discounted Payback Period Just Equal to the Project's

question 279

Multiple Choice

A project has a discounted payback period just equal to the project's life. The projections include a sales price of $21.90, a variable cost per unit of $14.80, and fixed costs of $27,200. The operating cash flow is $14,260. What is the break-even quantity?

• A) 2,008.45 units
• B) 3,830.99 units
• C) 4,316.89 units
• D) 5,839.44 units.
• E) 6,240.01 units.

---

Definitions:

Transportation-In

Costs associated with bringing inventory to a business, which are often added to the purchase price of goods.

Office Supplies

Various everyday items used in offices for tasks such as writing, organization, and communication, including pens, paper, and staplers.

Petty Cash

A small amount of cash on hand used for covering minor expenses.

Cash Over and Short

An account that records the discrepancies between the expected cash count and the actual amount of cash received or paid out, indicating errors or theft.