Given the Following Information, Calculate the Present Value Break-Even Point

question 65

Multiple Choice

Given the following information, calculate the present value break-even point. Initial investment: $2,000
Fixed costs: $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)100 units per year
• B)143 units per year
• C)202 units per year
• D)286 units per year
• E)None of the above

Assess the impact of occupancy, facility, and supplies expenses on flexible budgets.

Evaluate revenue and expense variances in comparing actual results to budgeted figures.

Understand the concept of spending variance and how to calculate it for different categories (manufacturing overhead, refurbishing materials, other expenses, equipment depreciation, supplies costs, occupancy costs, employee salaries and wages, facility expenses, travel expenses, power cost, and medical supplies).

Identify and calculate the revenue variance for different months.

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