Question

Consider each of the following projects:    Project Accounting Break-Even Unit Price Unit Variable Cost Fixed...

Consider each of the following projects:

  

Project Accounting
Break-Even

Unit Price

Unit Variable Cost

Fixed Costs

Depreciation
Alpha 147,400        $ 40       $ 29              $ 711,000      ?
Beta 117,000        ?       65              3,300,000      $ 1,300,000   
Zeta 5,248        84       ?              111,000      140,000   

  

Required:
(a) Find the depreciation for Project Alpha. (Do not round your intermediate calculations.)
(Click to select)  910,400  64,636  955,920  864,880  937,712

   

(b) Find the unit price for Project Beta. (Do not round your intermediate calculations.)
(Click to select)  592,091.5  104.32  99.1  93.21  565,178.25

  

(c) Find the unit variable cost for Project Zeta. (Do not round your intermediate calculations.)
(Click to select)  105.15  37.98  32.56  36.17  39.79
Business   Finance   
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Homework Answers

Answer #1

a. Depreciation of project Alpha =

Break even Units * (Selling price - Variable Cost) - Fixed costs - Depreciation = $0

147400 * $11 - 711000 - Depreciation = $0

Depreciation = $910400

b. unit price for Project Beta

Break even Units * (Selling price - Variable Cost) - Fixed costs - Depreciation = $0

117000 * (Selling price - 65) - 3300000 - 1300000 = $0

Selling Price = $104.32

c. unit variable cost for Project Zeta

Break even Units * (Selling price - Variable Cost) - Fixed costs - Depreciation = $0

5248 * (84 - Variable Cost) - 111000 - 140000 = $0

Variable Cost = $36.17

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