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Beck's Chalkboards is considering a new project with estimated depreciation of $26,000, fixed costs of $79,000,...

Beck's Chalkboards is considering a new project with estimated depreciation of $26,000, fixed costs of $79,000, and total sales of $187,000. The variable costs per unit are estimated at $12.09. What is the accounting break-even level of production?

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Answer #1
Answer

Assume that $187,000 sales Accounting break even sales

Sales $        187,000
Fixed Cost $          79,000
Depreciation $          26,000
Total fixed cost $        105,000
Variable cost (Sales-Fixed cost) $          82,000
No of units (Variable cost/Variable cost per unit) 6782 82000 /12.09
Answer: 6782units
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