Given the following information, calculate OCF at the accounting break-even point. Price = $30; variable cost = $10; ﬁxed cost = $25,000; depreciation = $5,000; tax rate = 34%.
A) $1,750
B) $5,000
C) $15,000
D) $25,000
E) $35,000

Question

Quizplus · Accepted Answer

At the accounting break-even point, net income is zero. Therefore, OCF = Depreciation + Net Income = $5,000 + $0 = $5,000.

Given the Following Information, Calculate OCF at the Accounting Break-Even