Answer:
FIRST CASE;
Accounting Break even = $13,094
Cash break even = $10,394
SECOND CASE;
Accounting Break even = $6,870
Cash break even = $1,387
THIRD CASE;
Accounting Break even = $189
Cash break even = $15
Explanation;
#Accounting break even point refers to the level of sales whereby a business generates exactly zero profits, i.e volume of sales or revenue exactly equals total expenses.
It can be calculated using below formula;
Accounting Break even = (Fixed cost per unit + depreciation) ÷ (unit price per unit - variable cost per unit)
#The cash break-even point provide a minimum amount of revenue of a firm generated from sales that are needed to provide positive cash flow.
It can be calculated using the below formula;
Cash break even = Fixed cost ÷ (selling price per unit - variable cost per unit )
FIRST CASE:
Accounting Break Even = ( 1,850,000 + $7,120,000) ÷ (3,340 - 2655) = 13,094unit
Cash Break Even = ($7,120,000) ÷ (3,340 - 2655)
= 10,394
SECOND CASE;
Accounting Break even = ($86,000 + $340,000) ÷ (141 - 79)= 6870
Cash break even = ($86,000) ÷ (62)= 1,387
THIRD CASE;
Accounting Break even = ($3,600 + 760) ÷ (30 - 7)= 189
Cash break even = ($3,600) ÷ (30 - 7) = 156
