Question

Tucker's Trucking is considering a project with a discounted payback period just equal to the project's life. The projections include a sales price of $27, variable costs per unit of $16, and fixed costs of $81,000. The break-even operating cash flow is $16,300. What is the break-even quantity?A. 7,363 units
B. 1,211 units
C. 1,482 units
D. 2,301 units
E. 8,845 units

Answer 1

Answer:

Total units will be 8845 units

So option (E) will be the correct option

Explanation:

We have given fixed cost = $81000

Operating cash flow = $16300

Let there are x units

We know that operating cash flow = Revenue - cost

So $16300=27\times x-16\times x-81000$

$11x=97300$

x = 8845 units

So option (E) will be the correct option