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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