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A project has an accounting break-even point of 2,000 units. The fixed costs are $4,200 and the depreciation expense is $400. The projected variable cost per unit is $23.10. What is the projected
Sales price?
ATC
A restated definition for Average Total Cost; it implies the cost per unit produced when both fixed and variable costs are accounted for across all levels of output.
AFC
Average Fixed Cost, which is the fixed costs of production spread out over the number of units produced, declining as production increases.
Average Total Cost
The total costs of production divided by the total output, giving the cost per unit of output calculated by adding fixed and variable costs and dividing by the number of units produced.
Fixed Cost
Costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of the output level.
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