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 costs+Depreciation)/(Unit price-Unit variable costs)

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

Case Accounting breakeven Cash breakeven 1 (8,020,000+2,560,000)/(2920-2375)=19412.84(Approx) 8,020,000/(2920-2375)=14715.60(Approx) 2 (66000+200,000)/(71-51)=13300 66000/(71-51)=3300 3 (2200+810)/(16-4)=250.83(Approx) 2200/(16-4)=183.33(Approx)

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