The Motor Works is considering an expansion project with estimated annual fixed costs of $71,000,depreciation of $38,500,variable costs per unit of $17.90 and an estimated sales price of $26.50 per unit.How many units must the firm sell to break-even on a cash basis?
A)6,521 units
B)8,256 units
C)8,510 units
D)9,667 units
E)10,842 units

Question

Quizplus · Accepted Answer

Q_{cash break-even} = $71,000/($26.50 - $17.90) = 8,256

The Motor Works Is Considering an Expansion Project with Estimated