Question: (Chapter 7 - Short-answer question. Use the following information to answer questions 9 to 11.) Given that you have nearly finished BA 7020, your manager



(Chapter 7 - Short-answer question. Use the following information to answer questions 9 to 11.) Given that you have nearly finished BA 7020, your manager and the Big Box Co. gives you the following information about a prospective 8-year project. The initial fixed assets costing $1,800,000, annual fixed costs of $1,006,800, variable costs per unit of $173.60, a sales price per unit of $289, a discount rate of 14 percent, and a tax rate of 22 percent. The asset will be depreciated straight-line to zero over the life of the project. The manager asks you to Compute the accounting break-even sales quantity. Compute the financial break-even sales quantity. If you expect to sell 12,000 units every year will you accept the project and why? Explain to your managers in words why calculating accounting break-even sales quantity and financial break-even sales quantity are important
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