A project has an accounting break-even point of 1,600 units. The ﬁxed costs are $3,200 and the depreciation expense is $200. The projected variable cost per unit is $20.50. What is the projected
Sales price?
A) $9.65
B) $14.75
C) $18.35
D) $20.50
E) $22.63

Question

Quizplus · Accepted Answer

The accounting break-even point is calculated as (Fixed Costs + Depreciation) / (Sales Price - Variable Cost). Plugging in the values: (3200 + 200) / (Sales Price - 20.50) = 1600. Solving for Sales Price gives $22.63.

A Project Has an Accounting Break-Even Point of 1,600 Units