Fixedcostsareestimatedat92000

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Unformatted text preview: ion 3 Question 3 The Lakeside Inn is considering expanding their operations. Fixed costs are estimated at $92,000 a year. The variable cost per unit is estimated at $22.50. The estimated sales price is $37.50 per unit. What is the cash break­even point of this project? (Round to whole units) (6,133) Question 4 Question 4 A project has a contribution margin of $5, projected fixed costs of $12,000, projected variable cost per unit of $12, and a projected financial break­even point of 5,000 units. What is the operating cash flow at this level of output? ($13,000) Question 5 Question 5 Kurt Neal and Son is considering a project with a discounted payback just equal to the project’s life. The projections include a sales price of $11, variable cost per unit of $8.50, and fixed costs of $4,500. The operating cash flow is $6,200. What is the financial break­even quantity? (4,280 units)...
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This document was uploaded on 01/14/2014.

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