Which one of the following is defined as the sales level thatcorresponds to a zero NPV? accounting
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Question:
Which one of the following is defined as the sales level thatcorresponds to a zero NPV?
accounting break-even | |
leveraged break-even | |
marginal break-even | |
cash break-even | |
financial break-even |
A company is considering a project with a cash break-even pointof 22,600 units. The selling price is $28 a unit, the variable costper unit is $13, and depreciation is $14,000. What is the projectedamount of fixed costs?
$325,000 | |
$339,000 | |
$342,000 | |
$348,000 | |
$353,000 |
Wexford Industrial Supply is considering a new project withestimated depreciation of $26,000, fixed costs of $79,000, andtotal sales of $187,000. The variable costs per unit are estimatedat $11.80. What is the accounting break-even level ofproduction?
4,871 units | |
5,333 units | |
5,415 units | |
6,949 units | |
7,248 units |
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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