In each of the following cases, calculate the accounting break-even and the cash

Question

In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)

    

In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)

Explanation / Answer

Accounting break-even=(Fixed cost+Depreciation)/(Unit price-Unit variable cost)

Cash break-even=Fixed cost/(Unit price-Unit variable cost)

Case Accounting breakeven Cash breakeven 1 (7,120,000+1,850,000)/(3340-2655)=13094.89 (Approx) 7,120,000/(3340-2655)=10394.16(Approx) 2 (86000+340,000)/(141-79)=6870.97 (Approx) 86000/(141-79)=1387.10(Approx) 3 (3600+760)/(30-7)=189.57(Approx) 3600/(30-7)=156.52(Approx)

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