From the Information Below, Calculate the Accounting Break-Even Point

question 2

Multiple Choice

From the information below, calculate the accounting break-even point. Initial investment: $2,000
Fixed costs are $2,000 per year
Variable costs: $6 per unit
Depreciation: $250 per year
Price: $20 per unit
Discount rate: 10%
Project life: 4 years
Tax rate: 34%

• A)88 units per year
• B)100 units per year
• C)143 units per year
• D)161 units per year
• E)None of the above

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