You Are Considering a New Project with Depreciation of $974,fixed

question 8

Multiple Choice

You are considering a new project with depreciation of $974,fixed costs of 11,580,and a sales price of $14.99.The variable cost per unit is $6.92.Ignore taxes.What is the accounting breakeven level of production?

• A)1,555.64 units
• B)933.33 units
• C)1,292.02 units
• D)1,592.91 units
• E)910.00 units

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Definitions:

Trial Balance

A report listing all the accounts and their balances at a specific point in time, used to ensure that debits equal credits.

Accounts Receivable

The sum customers owe a company for the delivery of services or products, payment for which has not yet been made.

Accounts Payable

Amounts owed by a company to suppliers or vendors for goods or services received but not yet paid for, recognized as a current liability on the balance sheet.

General Journal

A primary accounting record where financial transactions are entered before posting to ledger accounts.