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A project has the following estimated data: price = $66 per unit; variable costs = $43 per unit; fixed costs = $16,500; required return =
A project has the following estimated data: price = $66 per unit; variable costs = $43 per unit; fixed costs = $16,500; required return = 8 percent; initial investment = $25,000; life = five years. Ignoring the effect of taxes, the accounting break-even quantity is $935. Cash break-even quantity is $717.
What is the financial break-even quantity?
What is the degree of operating leverage at the financial break-even level of output?
Please only attempt if you can solve the question with a proper explanation. Please do not copy from Chegg.
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