A project with a life of one year has an accounting break-even point of 2,962 units. The fixed costs are $46,308 and the depreciation expense is $22,147. The projected variable cost per unit is $23.10. What is the projected sales price?

The projected sales price is $46.21 per unit

Explanation:

The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:

Break-even point in units = Fixed expense/(Selling price per unit-Variable cost per unit)

Selling price per unit = (Fixed expense/Break-even point in units) + Variable cost per unit)

The project  has an accounting break-even point of 2,962 units.

The depreciation expense is $22,147 and The fixed costs are $46,308. The depreciation expense is fixed cost.

Total Fixed expense =  $22,147 + $46,308 = $68,455

Selling price per unit = ($68,455/2,962) + $23.10 = $46.21 per unit

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.