At the accounting break-even point, Swiss Mountain Gear sells 14,600 ski masks at a price of $12 each

At a production level of 4,500 units, a project has total costs of $107,000. The variable cost per unit is $12.50. Assume the firm can increase production by 1,000 units without increasing its fixed costs. What will the total costs be if 4,800 units are produced?    A.  $102,780 B.  $104,640 C.  $106,400 D.  $108,000 E.  $110,750 Total cost = [$107,000 - ($12.50 × 4,500)] + (4,800 × $12.50) = $110,750

72.

A company is considering a project with a cash break-even point of 22,600 units. The selling price is $28 a unit, the variable cost per unit is $13, and depreciation is $14,000. What is the projected amount of fixed costs?    A.  $325,000 B.  $339,000 C.  $342,000 D.  $348,000 E.  $353,000 FCcash break-even = 22,600 × ($28 - $13) = $339,000

73.

At the accounting break-even point, Swiss Mountain Gear sells 14,600 ski masks at a price of $12 each. At this level of production, the depreciation is $58,000 and the variable cost per unit is $4. What is the amount of the fixed costs at this production level?    A.  $58,800 B.  $59,400 C.  $61,300 D.  $87,600 E.  $145,600 Fixed costsaccounting break-even = [14,600 × ($12 - $4)] - $58,000 = $58,800