Question

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?

Homework Answers

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
Please like
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The firm is considering an expansion project with estimated fixed costs of $100,000, depreciation of $15,000,...
The firm is considering an expansion project with estimated fixed costs of $100,000, depreciation of $15,000, variable costs per unit of $60, and an estimated sales price of $80 per unit. Ignore taxes. What is the accounting break-even quantity?
21. A company is considering a 5-year project that opens a new product line and requires...
21. A company is considering a 5-year project that opens a new product line and requires an initial outlay of $85,000. The assumed selling price is $97 per unit, and the variable cost is $61 per unit. Fixed costs not including depreciation are $20,000 per year. Assume depreciation is calculated using stright-line down to zero salvage value. If the required rate of return is 11% per year, what is the accounting break-even point? (Answer to the nearest whole unit.) 22....
1. A company is considering a 5-year project to open a new product line. A new...
1. A company is considering a 5-year project to open a new product line. A new machine with an installed cost of $120,000 would be required to manufacture their new product, which is estimated to produce sales of $40,000 in new revenues each year. The cost of goods sold to produce these sales (not including depreciation) is estimated at 49% of sales, and the tax rate at this firm is 27%. If straight-line depreciation is used to calculate annual depreciation,...
1. Fill in the Blanks Your firm pays $3,000 per month in fixed costs. You also...
1. Fill in the Blanks Your firm pays $3,000 per month in fixed costs. You also pay $15 per unit to produce your product. What is your total cost if you produce 1,000 units? What if you produce 5,000 units? 2. The Motor Works is considering an expansion project with estimated fixed costs of $127,000, depreciation of $16,900, variable costs per unit of $41.08, and an estimated sales price of $79.90 per unit. How many units must the firm sell...
Use the following information and the break even formulas to determine fixed costs, depreciation and operating...
Use the following information and the break even formulas to determine fixed costs, depreciation and operating cash flow. Accounting Break even quantity              13,000 units     Cash Break even quantity                            7,000 units Financial Break even quantity                    18,000 units     Unit Price                                                        60.00 Variable cost per unit                                  46.00 Fixed costs _____________________ Depreciation ____________________ Operating Cash Flow _____________
A project has the following estimated data: price = $90 per unit; variable costs = $36.9...
A project has the following estimated data: price = $90 per unit; variable costs = $36.9 per unit; fixed costs = $7,700; required return = 15 percent; initial investment = $10,000; life = five years. Ignore the effect of taxes. Required: (a) What is the accounting break-even quantity? (Do not round your intermediate calculations.) (b) What is the cash break-even quantity? (Do not round your intermediate calculations.) (c) What is the financial break-even quantity? (Do not round your intermediate calculations.)...
Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced...
Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.10. The machine will increase fixed costs by $12,800 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 217,000 Sales Price Per Unit $2.15 $ Variable Cost Per...
Grace P. has compiled this information related to a new project: Initial investment: $1,550,000; Fixed costs:...
Grace P. has compiled this information related to a new project: Initial investment: $1,550,000; Fixed costs: $420,000; Variable costs: $8.10 per unit; Selling price: $28.80 per unit; Discount rate: 14 percent; Project life: 6 years; Tax rate: 25 percent. Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point? 38,522 39,211 40,286 41,804 42,374
Grace P. has compiled this information related to a new project: Initial investment: $1,550,000; Fixed costs:...
Grace P. has compiled this information related to a new project: Initial investment: $1,550,000; Fixed costs: $420,000; Variable costs: $8.10 per unit; Selling price: $28.80 per unit; Discount rate: 14 percent; Project life: 6 years; Tax rate: 25 percent. Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point? 38,522 39,211 40,286 41,804 42,374
A project has a contribution margin per unit (i.e. profit per unit) of $12.5, fixed costs...
A project has a contribution margin per unit (i.e. profit per unit) of $12.5, fixed costs of $67,850, depreciation of $14,450, variable costs per unit of $14.5, and a financial break-even point of 15,620 units. What is the operating cash flow at this level of output, assuming we ignore tax?