From the Information Below, Calculate the Accounting Break-Even Point

question 2

Multiple Choice

From the information below, calculate the accounting break-even point. Initial investment: $2,000
Fixed costs are $2,000 per year
Variable costs: $6 per unit
Depreciation: $250 per year
Price: $20 per unit
Discount rate: 10%
Project life: 4 years
Tax rate: 34%

• A)88 units per year
• B)100 units per year
• C)143 units per year
• D)161 units per year
• E)None of the above

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Definitions:

Forage

Forage refers to the act of searching for and consuming food, typically used in the context of animals grazing or hunting for food in their natural environments.

Australopithecus

An extinct genus of hominins that lived in Africa between about 4 to 2 million years ago, known for walking upright and considered an early ancestor of humans.

Blood Vessels

Tubular structures that carry blood throughout the body, including arteries, veins, and capillaries.

Howler Monkeys

A type of large New World monkey known for its loud howl, which can be heard for miles, part of the family Atelidae.