. Chicago Heights Corporation makes healthy snack crackers. Each case of crackers produced can be...
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Finance
. Chicago Heights Corporation makes healthy snack crackers. Each case of crackers produced can be sold to a distributor for $68. The variable cost of producing each case is $41. The companys cash-based fixed costs (such as managers salaries, building rent, some components of insurance) total $3,100,000 per year. The machinery used in the manufacturing originally cost the company $4,200,000, and was expected to have a 6-year useful life. The companys managers feel that the weighted average cost of capital for the companys typical projects is 8.25% per year. What number of cases sold constitutes the companys annual Financial Break-Even Point? [In previous question 2 you computed the annual Operating or Accounting Break-Even Point.]
A. 148,719.49
B. 80,910.14
C. 226,457.79
D. 152,351.85
E. 58,929.55
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