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A project has the following estimated data: price = $68 per unit; variable costs = $44 per unit; fixed costs = $18,000; required return =
A project has the following estimated data: price = $68 per unit; variable costs = $44 per unit; fixed costs = $18,000; required return = 10 percent; initial investment = $40,000; life = five years. |
Ignoring the effect of taxes, what is the accounting break-even quantity? What is the cash break-even quantity? What is the financial break-even quantity? What is the degree of operating leverage at the financial break-even level of output? |
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