Question

Consider the following cases:    Case Unit Price Unit Variable Cost Fixed Costs Depreciation 1 $...

Consider the following cases:

  

Case Unit Price Unit Variable
Cost
Fixed Costs Depreciation
1 $ 6,000          $ 4,140          $ 13,000,000        $ 5,330,000       
2 43          30.1          13,000        20,800       
3 8          3.4          1,900        1,045       

  

Ignore any tax effects in calculating the cash break-even.

  

1a. Calculate the cash break-even point of Case 1.

  

1b. Calculate the accounting break-even point of Case 1.

  

2a. Calculate the cash break-even point of Case 2.

  

2b. Calculate the accounting break-even point of Case 2.

  

3a. Calculate the cash break-even point of Case 3.

  

3b. Calculate the accounting break-even point of Case 3.

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