Find the Accounting Break-Even Point Given the Following Information: Price

question 397

Multiple Choice

Find the accounting break-even point given the following information: Price = $50 per unit; variable cost = $35 per unit; annual fixed costs = $50,000; depreciation = $10,000.

• A) 1,160 units
• B) 2,298 units
• C) 3,333 units
• D) 3,429 units
• E) 4,000 units

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Definitions:

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits in banks and thrift institutions for at least $250,000 per depositor, per bank.

Restrictive Indorsement

An endorsement on a negotiable instrument, like a check, that limits its use, such as specifying that the instrument must be deposited into a particular account.

Negotiates

The act of discussing something formally to reach an agreement, often in business or diplomatic discussions.

Collection System

A method or process used to gather or accumulate items, information, or debts from various sources.