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

question 42

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:

Define Group

The process of specifying a set of individuals or items that share one or more characteristics, for the purpose of categorization or analysis.

Crystal Ball

A metaphorical term often used in decision making and forecasting to represent the ability to predict future events or outcomes.

Risk Analysis

The process of identifying and assessing potential risks and their impacts, used in finance, security, engineering, and many other fields to inform decision-making.

Risk

Exposure to the chance of loss or damage, often quantified in terms of probability and impact.