Break-Even Analysis

question 74

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 Yoo Computers is introducing a new game system that promises to never become outdated.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 amortization 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:

Total Assets

The sum of all assets owned by an entity, including cash, investments, property, and other valuables, used to assess financial health.

Excess Reserves

The capital reserves held by banks over and above the minimum required by regulators, available for lending or investing.

Required Reserves

The minimum amount of reserves that a bank must hold, as mandated by the central bank, against its deposit liabilities.

Reserve Requirement

The mandatory percentage of deposits that banks must hold in reserve, either in their vaults or at the central bank, not available for lending.