Question
A project has the following estimated data: price = $42 per unit; variable costs = $29 per unit; fixed costs = $16,000; required return =
A project has the following estimated data: price = $42 per unit; variable costs = $29 per unit; fixed costs = $16,000; required return = 10 percent; initial investment = $20,000; life = five years. |
Ignoring the effect of taxes, what is the accounting break-even quantity? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
Break-even quantity = ?? |
What is the cash break-even quantity? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
|
Break-even quantity = ? ? |
What is the financial break-even quantity? (Do not round intermediate calculations. 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? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.) |
DOL = ?? |
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