2. 10. Using break-even analysis [LO 11.3] Consider a project with the following data: accounting break-even quantity

Question:

2. 10.

Using break-even analysis [LO 11.3] Consider a project with the following data: accounting break-even quantity = 13 700 units; cash break-even quantity = 9,600 units; life = five years; fixed costs = $185 000; variable costs = $23 per unit; required return = 12 per cent.

Ignoring the effect of taxes, find the financial break-even quantity.

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