Question

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?

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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