A Project Has an Accounting Break-Even Point of 1,600 Units

question 385

Multiple Choice

A project has an accounting break-even point of 1,600 units. The fixed costs are $3,200 and the depreciation expense is $200. The projected variable cost per unit is $20.50. What is the projected
Sales price?

• A) $9.65
• B) $14.75
• C) $18.35
• D) $20.50
• E) $22.63

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Definitions:

Multiply

The mathematical operation of increasing one number by another to get a product.

Local Delicatessen

A neighborhood store specializing in the sale of fine or foreign prepared foods, such as meats, cheeses, and salads.

Pounds

In the US and British imperial systems, a measure of mass equaling 0.453592 kilograms, generally acknowledged as a unit of weight.

Salami

A type of cured sausage made from fermented and air-dried meat, known for its rich flavor and versatility in dishes.