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The Accounting Break-Even Production Quantity for a Project Is 12,320

Question 66

Multiple Choice

The accounting break-even production quantity for a project is 12,320 units.The fixed costs are $216,000 and the contribution margin per unit is $28.The fixed assets required for the project will be depreciated on straight-line basis to zero over the project's 5-year life.What is the amount of fixed assets required for this project?


A) $325,920
B) $644,800
C) $748,500
D) $1,080,000
E) $1,629,600

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