Question
A project has the following estimated data: price = $54 per unit; variable costs = $34 per unit; fixed costs = $17,000; required return =
A project has the following estimated data: price = $54 per unit; variable costs = $34 per unit; fixed costs = $17,000; required return = 15 percent; initial investment = $30,000; life = five 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 850 What is the cash break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16))
Break-even quantity 45900 What is the financial break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16))
Break-even quantity 1075 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 4.78
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