A project has an accounting breakeven point of 3,800 units.The fixed costs are $3,208,and the projected variable cost per unit is $16.42.The project requires an initial investment in fixed assets of $840 that will be depreciated straight-line to zero over the 4-year life of the project.What is the projected sales price given a zero tax rate?

Question

Quizplus · Accepted Answer

3,800 = [$3,208 + ($840 / 4)] / ($P - 16.42) P = $17.32

A Project Has an Accounting Breakeven Point of 3,800 Units