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A firm made a capital investment of $2.1 million, depreciated straight line over 4 years to zero. The
fixed costs excluding depreciation is $417,000. The sales price per unit of product is $2.60. The
variable cost per unit is $2.00. What is the firm's accounting break-even sales level in terms of the
units of product sold? a. 3.7 million b. 2.4 millton c. 0.8 million d. 1.2 million e. 1.6 million

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  • 1. A firm made a capital investment of $2.1 million, depreciated straight line over 4 years to zero. The fixed costs excluding depreciation is $417,000. The sales price per unit of product is $2.60. The variable cost per unit is $2.00. What is the firm's accounting break-even sales level in terms of the units of product sold? a. 3.7 million b. 2.4 millton c. 0.8 million d. 1.2 million e. 1.6 million