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A Project Has an Accounting Breakeven Point of 3,800 Units

Question 29

Multiple Choice

A project has an accounting breakeven point of 3,800 units.The fixed costs are $3,208,and the projected variable cost per unit is $16.42.The project requires an initial investment in fixed assets of $840 that will be depreciated straight-line to zero over the 4-year life of the project.What is the projected sales price given a zero tax rate?


A) $14.67
B) $21.08
C) $16.82
D) $20.08
E) $17.32

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