Break-Even Analysis

question 77

Multiple Choice

Break-even analysis. Yoo Computers is introducing a new game system that promises to never become outdated. Yoo will sell the systems for $200, and it will accrue $130 in variable costs to produce. If cash fixed expenses are $35 million per year and the depreciation and amortisation expenses are $7 million per year, then what is the Accounting Operating Profit Break-Even point for Yoo?

• A) 210,000 units
• B) 323,077 units
• C) 500,000 units
• D) 600,000 units

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Uncollectibles

Financial term referring to debts or receivables that are deemed unlikely to be collected and thus written off.

Partial Balance Sheet

A snapshot of a portion of a company's financial position at a specific point in time, focusing on certain assets, liabilities, or equity sections rather than the complete picture.

Aging Process

A method used in accounting to categorize accounts receivable according to the length of time an invoice has been outstanding.