The Handelcreek Co

Multiple Choice

The Handelcreek Co. is considering expanding their operations. Fixed costs are estimated at $86,000 a year. The variable cost per unit is estimated at $18.50. The estimated sales price is $34.00 per unit. What is the cash break-even point of this project?

A) 2,529 units
B) 4,649 units
C) 5,548 units
D) 7,114 units
E) 9,740 units