{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# Fixedcostsareestimatedat92000

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

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)...
View Full Document

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern