Given the following information:
Acctng price Variable Fixed Depreciation
A 6270 _______ $57 $103000 $24000
B 730 $950 ______ $496000 $98000
C 1970 $21 $14 $4900 _______
D 1970 $21 $8 ________ $12000
A. Calculate the missing information for each of the above projects.
B. Note that Projects C and D share the same accounting break-even. If sales
are above the break-even point which project would you prefer? Explain Why.
C. Calculate the cash break-even for each of the above projects. What do the
differences in accounting and cash break-even tell you about the four projects?
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