A Project Has an Accounting Breakeven Point of 3,800 Units

question 38

Multiple Choice

A project has an accounting breakeven point of 3,800 units.The fixed costs are $3,208,and the projected variable cost per unit is $16.42.The project requires an initial investment in fixed assets of $840 that will be depreciated straight-line to zero over the 4-year life of the project.What is the projected sales price given a zero tax rate?

• A)$14.67
• B)$21.08
• C)$16.82
• D)$20.08
• E)$17.32

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Definitions:

Formal Hierarchy

A structured organization where individuals are ranked according to their levels of authority and responsibility.

Organizational Chart

A diagram that displays the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.

Direct Supervision

A management approach where supervisors closely oversee the work process and tasks of their subordinates.

Formal Instructions

The provision of structured and official guidance or directives, often in an educational or organizational setting.