Kurt Neal and Son Is Considering a Project with a Discounted

question 356

Multiple Choice

Kurt Neal and Son is considering a project with a discounted payback just equal to the project's life. The projections include a sales price of $11, variable cost per unit of $8.50, and fixed costs of
$4,500. The operating cash flow is $6,200. What is the break- even quantity?

• A) 1,800 units
• B) 2,480 units
• C) 3,057 units
• D) 3,750 units
• E) 4,280 units

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Definitions:

Mg

A chemical element with the symbol Mg and atomic number 12, known as magnesium, which is a shiny gray solid and plays important roles in the human body.

Ml

A milliliter is a metric system volume unit that is equal to 1/1000th of a liter.

Gram

A unit of measurement for mass that is exactly one thousandth part of a kilogram.

Basic Unit

The fundamental, smallest, or simplest quantity or component in a system or set of measurements often used as a standard of measurement.