1. A company is considering a project with a cash break-even point of 14,500 units. The selling price is $14 a unit and the variable cost per unit is $8. What is the projected amount of fixed costs?
1. A company is considering a project with a cash break-even point of 14,500 units. The selling price is $14 a unit and the variable cost per unit is $8. What is the projected amount of fixed costs?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Additional Questions:
1. A company is considering a project with a cash break-even point of 14,500 units. The
selling price is $14 a unit and the variable cost per unit is $8. What is the projected
amount of fixed costs?
2. At a production level of 6,500 units, a project has total costs of $95,000. The variable
cost per unit is $10.80.
a) What is the amount of the total fixed costs?
b) If the production level is increased to 7,000 units, without any change in the total fixed
assets, what is the Total Costs?
3. Your company is reviewing a project with labor cost of $11.60 per unit, raw materials
cost of $24.58 a unit, and fixed costs of $12,000 a month. Sales are projected at 10,000
units over the four-month life of the project. What are the total variable costs and total
cost of the project?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff230e2c0-909b-47b5-9edb-822e8b1bf2bb%2F5fa4f668-0066-4924-9653-b1a55a5fe322%2F497ynsx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Additional Questions:
1. A company is considering a project with a cash break-even point of 14,500 units. The
selling price is $14 a unit and the variable cost per unit is $8. What is the projected
amount of fixed costs?
2. At a production level of 6,500 units, a project has total costs of $95,000. The variable
cost per unit is $10.80.
a) What is the amount of the total fixed costs?
b) If the production level is increased to 7,000 units, without any change in the total fixed
assets, what is the Total Costs?
3. Your company is reviewing a project with labor cost of $11.60 per unit, raw materials
cost of $24.58 a unit, and fixed costs of $12,000 a month. Sales are projected at 10,000
units over the four-month life of the project. What are the total variable costs and total
cost of the project?
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