A Proposed 1-Year Project Has a Contribution Margin of $5,fixed

question 72

Multiple Choice

A proposed 1-year project has a contribution margin of $5,fixed costs of $12,000,variable costs per unit of $12,depreciation of $30,000,an EAC of $41,185 and a tax rate of 21 percent.What is the present value break-even point in units?

• A)12,458
• B)9,489
• C)11,232
• D)10,603
• E)9,617

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Definitions:

Specific Performance

A legal remedy requiring a party to execute a contract as agreed, rather than paying damages for non-performance.

Specific Performance

A legal remedy that compels a party to execute a contract according to the precise terms agreed upon, rather than awarding damages for breach.

Punitive Damages

Financial compensation awarded to a plaintiff in a lawsuit, intended to punish the defendant for particularly harmful behavior.

Novation

Novation is the legal process by which an existing contract is replaced with a new contract, involving the same or different parties, where the obligations of the original contract are extinguished and replaced by new obligations.