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A Company Is Considering a Project with a Cash Break-Even

Question 3

Multiple Choice

A company is considering a project with a cash break-even point of 14,500 units. The selling price is $14 a unit and the variable cost per unit is $8. What is the projected amount of fixed costs?


A) $87,000
B) $94,000
C) $109,000
D) $116,000
E) $203,000

Correct Answer:

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