Question: Consider the following cases: Case Unit Price Unit Variable Cost Fixed Costs Depreciation 1 $ 3,000 $ 2,220 $ 15,000,000 $

Consider the following cases:

  

Case Unit Price Unit Variable
Cost		 Fixed Costs Depreciation
1 $ 3,000          $ 2,220          $ 15,000,000        $ 5,400,000       
2 40          28          15,000        36,000       
3 8          3.4          800        560       

  

Ignore any tax effects in calculating the cash break-even.

  

1a. Calculate the cash break-even point of Case 1.

  

1b. Calculate the accounting break-even point of Case 1.

  

2a. Calculate the cash break-even point of Case 2.

  

2b. Calculate the accounting break-even point of Case 2.

  

3a. Calculate the cash break-even point of Case 3.

  

3b. Calculate the accounting break-even point of Case 3.

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