The Motor Works Is Considering an Expansion Project with Estimated

question 6

Multiple Choice

The Motor Works is considering an expansion project with estimated fixed costs of $127,000, depreciation of $16,900, variable costs per unit of $41.08, and an estimated sales price of $79.90 per unit. How many units must the firm sell to break even on a cash basis?

• A) 2,928 units
• B) 3,272 units
• C) 3,510 units
• D) 4,206 units
• E) 3,842 units

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