A Project Has an Accounting Break-Even Point of 2,239 Units

question 46

Multiple Choice

A project has an accounting break-even point of 2,239 units.The fixed costs are $4,200 and the projected variable cost per unit is $23.30.The project requires an initial investment in fixed assets of $1,200 that will be depreciated straight-line to zero over the 4-year life of the project.What is the projected sales price?

• A)$24.67
• B)$21.08
• C)$24.82
• D)$25.08
• E)$25.31

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Definitions:

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation, that can be tested through experimentation or observation.

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Durkheim

Refers to Émile Durkheim, a foundational French sociologist noted for his studies on social integration, religion, and the establishment of sociology as an academic discipline.