A Project Has an Accounting Break-Even Point of 15,329 Units

question 79

Multiple Choice

A project has an accounting break-even point of 15,329 units.The fixed costs are $382,000 and the projected variable cost per unit is $29.10.The project will require $780,000 for fixed assets which will be depreciated straight-line to zero over the project's 6-year life.What is the projected sales price per unit?

• A)$47.65
• B)$48.18
• C)$54.02
• D)$56.67
• E)$62.50

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Definitions:

Freshmen

A term typically used in the United States to describe a first-year student in high school or college.

Penn State University

A public research university with its main campus located in State College, Pennsylvania.

Better Buy

A comparative evaluation of products or deals to determine which offers the best value for money.

Ounce

A unit of weight equal to one sixteenth of a pound or approximately 28.35 grams in the Imperial system.