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A Project Has an Accounting Break-Even Point of 7,264 Units

Question 34

Multiple Choice

A project has an accounting break-even point of 7,264 units. The fixed costs are $164,800 and the projected variable cost per unit is $24.57. The project will require $398,000 for fixed assets which will be depreciated straight-line to zero over the project's four-year life. What is the projected sales price per unit?


A) $56.59
B) $58.18
C) $64.02
D) $76.67
E) $60.95

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