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A project has the following estimated data: price = $70 per unit; variable costs = $30.80 per unit; fixed costs = $5,800; required return =
A project has the following estimated data: price = $70 per unit; variable costs = $30.80 per unit; fixed costs = $5,800; required return = 17 percent; initial investment = $8,000; life = seven years. Ignore the effect of taxes. |
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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