1. Lowell Inc. is analyzing its cost structure. Its fixed operating costs are $300,000, its variable costs of $3.00 per unit produced, and its products sell for $4.00 per unit. What is the company's breakeven point, i.e., at what unit sales volume would income equal costs?

   		750,000
   		453,403
   		428,571
   		300,000

4.5 points

QUESTION 12

1. Lowell Corporation buys on terms of 2/8, net 30 days, it does not take discounts, and it actually pays after 30 days. What is the effective annual percentage cost of its non-free trade credit? (Use a 365-day year.)

   		25.92%
   		16.69%
   		19.19%
   		39.82%