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## Accounting

 Accounting Basics Cost Accounting Financial Accounting Managerial Accounting Auditing Taxation

Q1) In each of the following cases, determine unknown variable:

 Accounting Break-Even Unit Price Unit Variable Cost Fixed Costs Depreciation 127,500 \$41 \$30 \$820,000 ? 135,000 ? 43 3,200,000 \$1,150,000 5,478 98 ? 160,000 105,000

Project has given estimated data: price=\$68 per unit; variable costs=\$41 per unit: fixed costs=\$8,000; required return=15 percent; initial investment=\$12,000; life=four years. Ignoring effect of taxes, detemining accounting break-even quantity? Cash break-even quantity? Financial break-even quantity? Determine degree of operating leverage at financial break-even level of output?

Let a project with following data:

accounting break-even quantity=17,000 units;

cash break-even quantity=12,000 units;

life=five years;

fixed costs=\$130,000;

variable costs=\$23 per unit;

required return=16 percent.

Ignoring effect of taxes, determine financial break-even quanity

Accounting Basics, Accounting

• Category:- Accounting Basics
• Reference No.:- M920989

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