Consider a Project with the Following Data: Accounting Break-Even Quantity

question 80

Multiple Choice

Consider a project with the following data: accounting break-even quantity = 29,000 units; cash break-even quantity = 16,250 units; life = 10 years; fixed costs = $203,000; variable costs = $24 per unit; required return = 14 percent; depreciation = straight line.Ignoring the effect of taxes,what is the financial break-even quantity?

• A)38,723 units
• B)39,201 units
• C)39,458 units
• D)39,624 units
• E)40,693 units

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Definitions:

Temporary Accounts

Accounts used to accumulate data related to one accounting period, including revenue, expense, and withdrawal accounts, which are closed at the end of the period.

Trial Balance Columns

Lists in a company's accounting records that show all the debit and credit balances of its accounts, used for internal checking purposes.

General Journal

A ledger where double-entry accounting transactions are initially recorded, including details such as date, accounts affected, and amounts.

General Ledger

A comprehensive set of accounts that records all financial transactions of a business, used to prepare financial statements.