Problem:
Wexford Industrial Supply is considering a new project with estimated depreciation of $32,000, fixed costs of $36,000, and total sales of $73,500. The variable costs per unit are estimated at $5.00.
Required:
Question: What is the accounting break-even level of production?
- 32,736 units
- 1,100 units
- 33,100 units
- 7,500 units
- 7,292 units
Note: Provide support for rationale.