Question
A project has the following estimated data: price = $64 per unit; variable costs = $49 per unit; fixed costs = $20,300; required return =
A project has the following estimated data: price = $64 per unit; variable costs = $49 per unit; fixed costs = $20,300; required return = 12%; initial investment = $27,800; life = four years. Ignoring the effect of taxes, what is the accounting break-even quantity? (Round the final answer to 2 decimal places.) Break-even quantity What is the cash break-even quantity? (Round the final answer to 2 decimal places.) Break-even quantity What is the financial break-even quantity? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Break-even quantity What is the degree of operating leverage at the financial break-even level of output? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) DOL
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