Question: We are evaluating a project that costs $843,833, has an eight- year life, and has no salvage value. Assume that depreciation is straight-line to zero
We are evaluating a project that costs $843,833, has an eight- year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 55,213 units per year. Price per unit is $37, variable cost per unit is $20, and fixed costs are $424 per year. The tax rate is 35%, and we require a return of 22% on this project. Calculate the Accounting Break-Even Point. (Round answer to O decimal places. Do not round intermediate calculations)
We are evaluating a project that costs $843,833, has an eightyear life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 55,213 units per year. Price per unit is $37, variable cost per unit is $20, and fixed costs are $424 per year. The tax rate is 35%, and we require a return of 22% on this project. Calculate the Accounting Break-Even Point. (Round answer to O decimal places. Do not round intermediate calculations)
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
