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

question 2

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:

Actual Rate

The real interest rate or cost rate applied in transactions, differentiating from theoretical or expected rates.

Direct Labor Costs

The expenses associated with employees who directly contribute to the production of goods, such as wages for assembly line workers.

Direct Materials Quantity Variance

The difference between the actual quantity of direct materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit.

Materials Cost Per Yard

The expense associated with acquiring raw materials needed for manufacturing, measured per yard.