ABC, Inc Is Considering a Project with a Discounted Payback Just

question 199

Multiple Choice

ABC, Inc. is considering a project with a discounted payback just equal to the project's life. The projections include a sales price of $13, variable cost per unit of $10.50, and fixed costs of $5,000.
The operating cash flow is $6,300. What is the break-even quantity?

• A) 3,869 units
• B) 3,913 units
• C) 4,340 units
• D) 4,520 units
• E) 4,610 units

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Definitions:

Cross-sectional

Pertains to research that involves analyzing data from a population, or a representative subset, at a specific point in time.

Longitudinal

A research design or study that follows subjects over a period of time, allowing for the observation of long-term effects or changes.

Participants

Individuals who take part in a research study or experiment.

Impulsive

Characterized by actions taken without forethought or consideration of the consequences; spontaneous behavior.