A Project Has a Four-Year Life and an Initial Cost

question 135

Multiple Choice

A project has a four-year life and an initial cost of $84,000. This project has been assigned a 15% required rate of return. The selling price per unit has been set at $33.00. Annual fixed costs are
$67,500 with variable costs of $28.90 per unit. What is the financial break-even quantity if taxes are
Ignored?

• A) 16,463
• B) 17,897
• C) 18,419
• D) 23,640
• E) 29,422

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Definitions:

Constitutionally Divided

A term referring to the separation of powers among the different branches of government as defined by a constitution.

Implied

Something suggested or indicated, though not expressly stated.

Internal Revenue Service

The U.S. government agency responsible for the collection of taxes and enforcement of tax laws.

Expressed Powers

Specific powers granted to the government or its branches explicitly mentioned in a constitution, particularly the United States Constitution.