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A project has the following estimated data: price = 50 dollar per unit variable cost = 30dollar per unit fixed cost= 22.000 dollar required return

A project has the following estimated data:

price = 50 dollar per unit

variable cost = 30dollar per unit

fixed cost= 22.000 dollar

required return = 10%

initial investment = 32,000 dollar

life of the project = 4 years

salvage value= 0

  1. Ignoring the effect of the taxes, what is the financial break-even quantity?
  2. What is the degree of operating leverage at the financial break-even quantity?

If sales increase by 5%, how much will the operating cash flow be?

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