Wexford Industrial Supply is considering a new project with estimated depreciation of $26,000,fixed costs of $79,000,and total sales of $187,000.The variable costs per unit are estimated at $11.80.What is the accounting break-even level of production?
A)4,871 units
B)5,333 units
C)5,415 units
D)6,949 units
E)7,248 units

Question

Quizplus · Accepted Answer

Q_{accounting break-even} = ($79,000 + $26,000)/[($187,000/Q) - $11.80]Q = 6,949 units

Wexford Industrial Supply Is Considering a New Project with Estimated