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a project has an accounting break-even point of 7,264 units. the fixed costs are $164,800 and the projected variable cost per unit is $24.57. the project will require $398,000 for fixed assets which will be depreciated straight-line to zero over the project's four-year life. what is the projected sales price per unit?

Respuesta :

The projected sales price per unit is P = $60.95

Accounting break-even = 7,264 = [$164,800 + ($398,000/4)]/($P − 24.57)

sales price per unit P = $60.95

Numerous aspects of business and finance make use of break-even points. It is the output level when total production revenue and total production costs are equal in accounting terms. The break-even point in investment is the moment at which the purchase price is equal to the market price.

For business owners, the break-even point is crucial since it indicates the minimum level of sales needed to turn a profit. Knowing the break-even threshold enables a business owner to make well-informed choices regarding pricing, output levels, and other elements that affect the bottom line.

Learn more about the break-even point here:

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