The Lakeside Inn Is Considering Expanding Their Operations

question 293

Multiple Choice

The Lakeside Inn is considering expanding their operations. Fixed costs are estimated at $92,000 a year. The variable cost per unit is estimated at $22.50. The estimated sales price is $37.50 per unit. What is the cash break-even point of this project? (Round to whole units.)

• A) 6,133
• B) 6,420
• C) 6,667
• D) 7,000
• E) 7,180

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