Max's Brakes is introducing a new revolutionary brake-pad for vehicles that will never wear out. Max's will sell the pads for $100 a pair and they will cost $80 in variable costs to produce. If cash fixed expenses are $1,500 per year and the depreciation and amortisation expenses are $600 per year, then what is the Accounting Operating Profit Break-Even point for Max's? a. 8 pairs b. 21 pairs c. 75 pairs d. 105 pairs

Max's Brakes is introducing a new revolutionary brake-pad for vehicles that will never wear out. Max's will sell the pads for $100 a pair and they will cost $80 in variable costs to produce. If cash fixed expenses are $1,500 per year and the depreciation and amortisation expenses are $600 per year, then what is the Accounting Operating Profit Break-Even point for Max's? a. 8 pairs b. 21 pairs c. 75 pairs d. 105 pairs

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 5PROB

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