Question
5. A project has the following estimated data: price = $74 per unit; variable costs = $47 per unit; fixed costs = $22,500; required return
5.
A project has the following estimated data: price = $74 per unit; variable costs = $47 per unit; fixed costs = $22,500; required return = 8 percent; initial investment = $24,000; life = three years. |
Ignoring the effect of taxes, what is the accounting break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16)) |
Break-even quantity |
What is the cash break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16)) |
Break-even quantity |
What is the financial break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16)) |
Break-even quantity |
What is the degree of operating leverage at the financial break-even level of output? (Round your answer to 3 decimal places. (e.g., 32.161)) |
DOL |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started