Assume a Project Has Estimated Fixed Costs of $61,200,variable Costs

question 46

Multiple Choice

Assume a project has estimated fixed costs of $61,200,variable costs per unit of $84.29,a selling price of $199,and an initial cost of $402,000 for fixed assets.Depreciation is straight-line to zero over the project's 4-year life.The tax rate is 30 percent,and the discount rate is 12 percent.What is the financial breakeven point?

• A)1,422 units
• B)1,806 units
• C)1,366 units
• D)1,698 units
• E)1,228 units

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Definitions:

Negative Force

An influence or factor that detracts from, hampers, or opposes positive outcomes or progress.

Labor Relations

The study and practice of managing relationships between employers and employees, focusing on negotiation, implementation of agreements, and resolution of disputes.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.

Historical Rate

An exchange rate used to convert amounts related to transactions in foreign currencies based on the rate in effect at the time of the original transaction.