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A project has the following estimated data: price = $64 per unit; variable costs = $26.24 per unit; fixed costs = $7,400; required return 8
A project has the following estimated data: price = $64 per unit; variable costs = $26.24 per unit; fixed costs = $7,400; required return 8 percent; initial investment = $7,000; life = seven years. (a)What is the financial break-even quantity? Ignore the effect of taxes. 232 A (b)What is the degree of operating leverage at the financial break-even level of output? (Click to select)
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