Consider the following cases:
Case
Unit Price
Unit Variable
Cost
Fixed Costs
Depreciation
$
1
$ 8,000
$ 5,520
13,000,000
$ 4,810,000
2
43
27.52
13,000
19,500
3
6
2.7
2,000
1,100
Ignore any tax effects in calculating the cash break-even.
1a. Calculate the cash break-even point of Case 1.
Cash break-even
1b. Calculate the accounting break-even point of Case 1.
Accounting break-even