Calculate the Accounting Break-Even
April 12, 2019
Calculate the Accounting Break-Even for $1 Only
In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)
| Case | Unit Price | Unit Variable Cost | Fixed Costs | Depreciation | ||||
| 1 | $ | 2,800 | $ | 2,295 | $ | 7,000,000 | $ | 1,250,000 |
| 2 | 51 | 43 | 65,000 | 160,000 | ||||
| 3 | 12 | 4 | 1,800 | 700 | ||||
| Case | Accounting break-even | Cash break-even |
| 1 | ||
| 2 | ||
| 3 | ||
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