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A project has the following estimated data: Price =$52 per unit; variable costs =$34 per unit; fixed costs =$23,500; required return =12 percent; initial investment
A project has the following estimated data: Price =$52 per unit; variable costs =$34 per unit; fixed costs =$23,500; required return =12 percent; initial investment =$30,000; life = three years. a. Ignoring the effect of taxes, what is the accounting break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the cash break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the financial break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the degree of operating leverage at the financial break-even level of output? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) Answer is complete but not entirely correct
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