The Lakeside Inn Is Considering Expanding Their Operations

Multiple Choice

The Lakeside Inn is considering expanding their operations. Fixed costs are estimated at $92,000 a year. The variable cost per unit is estimated at $22.50. The estimated sales price is $37.50 per unit. What is the cash break-even point of this project? (Round to whole units.)

A) 6,133
B) 6,420
C) 6,667
D) 7,000
E) 7,180