From the Information Below, Calculate the Accounting Break-Even Point

question 5

Multiple Choice

From the information below, calculate the accounting break-even point. Fixed costs are $2,000/year. (Initial investment is $2,000.)
Variable costs: $6/unit.
Depreciation: $250/year.
Price: $20/unit.
Discount rate: 10%.
Project life: 4 years.
Tax rate: 34%.

• A) 88 units/year.
• B) 161 units/year.
• C) 143 units/year.
• D) 100 units/year.

Recognize the application and development process of predictive statistics.

Appreciate the advantages and disadvantages of census vs. sampling in data collection.

Understand the differences between temporary and permanent accounts and their roles in the accounting cycle.

Distinguish between classified and unclassified balance sheets and their importance to stakeholders.

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Definitions:

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Chronic Sore Throat

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Disruptive Mood Dysregulation Disorder

A psychiatric disorder characterized by severe and recurrent temper outbursts in children and adolescents that are out of proportion to the situation.