9 (Week 5) Making Capital Investments Decision Project Analysis and Evaluation (

9 (Week 5) Making Capital Investments Decision Project Analysis and Evaluation (Tutorial Questions 1,4, & 5) 1 Calculating cost and break-even Distance ltd manufactures petrol additives. The variable materials cost is $1.20 per litre and the variable labour cost is $ 2.60 per litre. A. What is the variable cost per litre? B. Distance incurs fixed costs of $ 400000 during a year when total production is 280000 litres. What are the total costs for the year? C. If the selling price is $ 5.80 per litre, does Distance break even on a cash basis? If depreciation is $ 130000 per year, what is the accounting breakeven point?

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