Tucker's Trucking is considering a project with a discounted payback period just equal to the project's life.The projections include a sales price of $38,variable cost per unit of $18.50,and fixed costs of $32,000.The operating cash flow is $19,700.What is the break-even quantity?
A)631 units
B)1,211 units
C)1,641 units
D)2,301 units
E)2,651 units

Question

Quizplus · Accepted Answer

Q_{financial break-even} = ($32,000 + $19,700)/($38 - $18.50) = 2,651 units

Tucker's Trucking Is Considering a Project with a Discounted Payback