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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 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, eg.. 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. 3216.) 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.) a. Accounting break-even quantity b. Cash break-even quantity c. Financial break-even quantity d. DOL
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