Accounting break-even level of production

Assignment Help Financial Management

Reference no: EM131050488

West County Corp. is considering a new project with estimated depreciation of $34,000, fixed costs of $35,000, and total sales of $73,600. The variable costs per unit are estimated at $4.60. What is the accounting break-even level of production? (Please give answer in number of units).

A. 2,000 units

B. 8,159 units

C. 1,000 units

D. 35,000 units

Reference no: EM131050488

Questions Cloud

What are the pros and cons of this approach : last conklin inc had a total assets turner of 1,33 and equity multiplier of 1.75 its sales were 295,000 and its net income was 10,600. the cfo believes the company could have operated more effiently, lowered its cost, and increase its net income by 1..

What if the opportunity cost of capital : Suburban Hospital has two options in how to purchase some EDP equipment with a list price of $5m. Option one is a 15% reduction in the price of the equipment but the hospital has to pay the full amount at the time of purchase. What if the opportunity..

What were the dilemmas on the team : What were the dilemmas on that team? What, from this chapter, would address that dilemma? Your Assignment this week will be to put together a Microsoft PowerPoint presentation.

What is the probability that all the passengers : The probability that an airplane passenger misses his/her fight is only .05. A typical airplane has 100 seats. If all the tickets are sold: a) What is the probability that all the passengers make it to the flight?

Accounting break-even level of production : West County Corp. is considering a new project with estimated depreciation of $34,000, fixed costs of $35,000, and total sales of $73,600. The variable costs per unit are estimated at $4.60. What is the accounting break-even level of production?

The holding period is a useful way to compare investments : The holding period is a useful way to compare investments because it considers the time value of money. only capital gains, but not income. both income and capital gains or losses. A) the relative size of investments being compare.

If the company were financed entirely by equity : Moji Mont Company has a debt–equity ratio of .25. The required return on the company’s unlevered equity is 15 percent, and the pretax cost of the firm’s debt is 8.0 percent. Sales revenue for the company is expected to remain stable indefinitely at l..

What is the NPV of opening the mine in one year : Hick Mining is evaluating when to open a gold mine. The mine has 48,800 ounces of gold left that can be mined, and mining operations will produce 6,100 ounces per year. The required return on the gold mine is 11 percent, and it will cost $34.1 millio..

Financial analysts believe stock will be at price target : Firm is expected to pay a dividend of $2.95 next year and $3.10 the following year. Financial analysts believe the stock will be at their price target of $60 in two years. Compute the value of this stock with a required return of 12.9 percent.

User Account

All Pages