Exam 11: Project Analysis and Evaluation

The accounting break-even production quantity for a project is 11,640 units. The fixed costs are $216,000 and the contribution margin per unit is $28. The fixed assets required for the project will be depreciated on straight-line basis to zero over the project's 5-year life. What is the amount of fixed assets required for this project?

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?

Which one of the following represents the level of output where a project produces a rate of return just equal to its requirement?

An analysis which combines scenario analysis with sensitivity analysis is called _____ analysis.

Which one of the following statements concerning variable costs is correct?

Which one of the following types of analysis is the most complex to conduct?