SOLUTION: The cost of a new facility is $606,000 and is expected a six year life with annual depreciation of $101,000 and not salvage value. Annual sales from the the new facility is expect

Question 734947: The cost of a new facility is $606,000 and is expected a six year life with annual depreciation of $101,000 and not salvage value. Annual sales from the the new facility is expected to 1,970 units with the price of $1,030 per unit. Variable production cost are $600 per unit while fixed cash expenses are $75,000 per year.
A) Find the accounting and cash break-even units of production.
b) Will the plant make a profit based on its current expected level of operations?
C) Will the plant contribute cash flow tot he firm at the expected level of operations?
Round to the nearest integer.
Looking for answers but the work on how to do it for personal gain and knowledge as well come test time.
Answer by lynnlo(4176) (Show Source): You can put this solution on YOUR website!

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