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:

Depression

A mental health issue involving a perpetual state of sorrow or disinterest in engaging activities, markedly interfering with daily existence.

Ethical Standards

Principles that govern behavior based on notions of right and wrong.

Variables

Elements, features, or factors that are liable to vary or change.

Sample Size

The number of participants or observations included in a study, which can affect the reliability and validity of the research results.