Question
A project has the following estimated data: price = $54 per unit; variable costs = $29.16 per unit;fixed costs = $6,100; required return = 16
A project has the following estimated data: price = $54 per unit; variable costs = $29.16 per unit;fixed costs = $6,100; required return = 16 percent; initial investment = $13,000; life = three years. Ignoring the effect of taxes, the accounting break-even quantity is( )units. (Round your answer to 2 decimal places. (e.g., 32.16)) The cash break-even quantity is( )units. (Round your answer to 2 decimal places. (e.g., 32.16)) The financial break-even quantity is( )units.(Round your answer to 2 decimal places. (e.g., 32.16)) The degree of operating leverage at the financial break-even level of output is( ) . (Round your answer to 3 decimal places. (e.g., 32.161)) |
In each of the following cases, find the unknown variable: (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16)) |
Accounting Break-Even | Unit Price | Unit Variable Cost | Fixed Costs | Depreciation | |
1 | 80,400 | $36 | $31 | $755,000 | |
2 | 124,000 | 65 | 3,300,000 | $1,250,000 | |
3 | 5,507 | 111 | 114,000 | 100,000 | |
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