Homework: Homework Four Score: 0 of 2 pts P13-10 (similar to) Save 6 ot 10 (0 co

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Homework: Homework Four Score: 0 of 2 pts P13-10 (similar to) Save 6 ot 10 (0 complete) Hw Score: 0%, 0 of 20 pts Question Help Related to Checkpoint 13.4) (Using break-even analysis) Maybom Enterprises, LLC runs a number of sporting goods businesses and is currently analyzing a new T-shirt printing business. Specifically, the company is evaluating the feasibility of this business based on its estimates of the unit sales costs. The company's initial estimates of annual sales and other ontlical variables are shown here:1B price per unit, variable cost per unit, and fixed a. Caloulate the accounting and cash break-even annual sales volume in units y and is currently enroliled in his junior year at the local state university. After reviewing the accounting break-evern should be induded in the calculation. BIl had just completed his first finance class and was well aware that calculation done in part a Bill wondered if the depreciation expense depreciation is not an actual What can you learn from the cash and accounting break-even points? but rather an allocation of the cost of the printing equipment used in the business over its useful life What do you think? out-of-poc a. The accounting broak-even units of production ls units.(Round to the nearest integer) Enter your answer in the answer box and then click Check Answer. Cloar All

Explanation / Answer

Answer ) Break even point = fixed cost / (sales price per unit - variable cost per unit)

for accounting BEP

Fixed cost = cash fixed cost + depreciations =$9900 + $ 4200 = $14100

BEP = 14100 / (16.33-10.74) =2522.361 units =2523 units

For Cash BEP

Fixed cost =$9900

BEP = 9900 / (16.33-10.74) = 1771 Units.

The accounting break even is better method of calculation of BEP for fixed period , accounting cycle . While Cash BEP only provide the detail of required units in case of cash investment only.

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