A project has an accounting break-even point of 2,239 units.The fixed costs are $4,200 and the projected variable cost per unit is $23.30.The project requires an initial investment in fixed assets of $1,200 that will be depreciated straight-line to zero over the 4-year life of the project.What is the projected sales price?

Question

Quizplus · Accepted Answer

Accounting break-even Q = 2,239 = [$4,200 + ($1,200/4)]/($P - 23.30)P = $25.31

A Project Has an Accounting Break-Even Point of 2,239 Units