A Project Has the Following Estimated Data: Price = $200

question 349

Multiple Choice

A project has the following estimated data: price = $200 per unit; variable costs = $150 per unit; fixed costs = $400,000; required return = 9%; initial investment = $1,500,000; $200,000 salvage value; life = 15 years. What is the accounting break-even quantity?

• A) 7,033 units.
• B) 7,733 units.
• C) 8,033 units.
• D) 9,733 units.
• E) 10,033 units.

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