Requirement 1: (a) Calculate the cash break-even point of Case 1. (Do not round

ID: 2711663 • Letter: R

Question

Requirement 1:

(a) Calculate the cash break-even point of Case 1. (Do not round your intermediate calculations.)

(b) Calculate the accounting break-even point of Case 1. (Do not round your intermediate calculations.)

Requirement 2:

(a) Calculate the cash break-even point of Case 2. (Do not round your intermediate calculations.)

(b) Calculate the accounting break-even point of Case 2. (Do not round your intermediate calculations.)

Requirement 3:

(a) Calculate the cash break-even point of Case 3. (Do not round your intermediate calculations.)

(b) Calculate the accounting break-even point of Case 3. (Do not round your intermediate calculations.)

Requirement 1:

(a) Calculate the cash break-even point of Case 1. (Do not round your intermediate calculations.)

cash break-even point = Fixed Cost/(Sell Price - Variable cost)

cash break-even point = 11000000/(7000-4830)

cash break-even point = 5069.12

(b) Calculate the accounting break-even point of Case 1. (Do not round your intermediate calculations.)

Accounting break-even point = (Fixed Cost+Depreciation)/(Sell Price - Variable cost)

Accounting break-even point = (11000000+4510000)/(7000-4830)

Accounting break-even point = 7147.47

Requirement 2:

(a) Calculate the cash break-even point of Case 2. (Do not round your intermediate calculations.)

cash break-even point = Fixed Cost/(Sell Price - Variable cost)

cash break-even point = 11000/(42-33.18)

cash break-even point = 1247.17

(b) Calculate the accounting break-even point of Case 2. (Do not round your intermediate calculations.)

Accounting break-even point = (Fixed Cost+Depreciation)/(Sell Price - Variable cost)

Accounting break-even point = (11000+25300)/(42-33.18)

Accounting break-even point = 4115.65

Requirement 3:

(a) Calculate the cash break-even point of Case 3. (Do not round your intermediate calculations.)

Cash break-even point = Fixed Cost/(Sell Price - Variable cost)

cash break-even point = 800/(10-3.80)

cash break-even point = 129.03

(b) Calculate the accounting break-even point of Case 3. (Do not round your intermediate calculations.)

Accounting break-even point = (Fixed Cost+Depreciation)/(Sell Price - Variable cost)

Accounting break-even point = (800+560)/(10-3.80)

Accounting break-even point = 219.35

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