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The Motor Works Is Considering an Expansion Project with Estimated

Question 6

Multiple Choice

The Motor Works is considering an expansion project with estimated fixed costs of $127,000, depreciation of $16,900, variable costs per unit of $41.08, and an estimated sales price of $79.90 per unit. How many units must the firm sell to break even on a cash basis?


A) 2,928 units
B) 3,272 units
C) 3,510 units
D) 4,206 units
E) 3,842 units

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