Question
A project has the following estimated data: price = $62 per unit; variable costs = $38 per unit; fixed costs = $23,000; required return =
A project has the following estimated data: price = $62 per unit; variable costs = $38 per unit; fixed costs = $23,000; required return = 15 percent; initial investment = $27,000; life = three years.
What is the financial break-even quantity?
What is the degree of operating leverage at the financial break-even level of output?(Hint: Financial Break Even is where NPV=0)
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
