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:

Sperm Cells

Male reproductive cells that carry a man's DNA and are necessary for the fertilization of a female's egg to produce offspring.

Ejaculate

The act of ejecting semen from the male body during sexual climax.

Donor IVF

The transfer of a donor’s ovum, fertilized in a laboratory dish, to the uterus of another woman.

Artificial Insemination

A medical procedure that involves the direct insertion of sperm into a woman's cervix, fallopian tubes, or uterus to facilitate pregnancy.