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A company is considering a project with a cash break-even point of 16,400 units. The selling...

A company is considering a project with a cash break-even point of 16,400 units. The selling price is $37 a unit, the variable cost per unit is $22, and depreciation is $18,000. What is the projected amount of fixed costs? Show your work.

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Answer #1

Cash breakeven=Fixed costs/(Unit price-Variable cost)

16400=Fixed costs/(37-22)

Fixed costs=16400*15

=$246,000

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