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A project has the following estimated data: price = $72 per unit; variable costs = $42.48 per unit; fixed costs = $6,600; required return =
A project has the following estimated data: price = $72 per unit; variable costs = $42.48 per unit; fixed costs = $6,600; required return = 16 percent; initial investment = $12,000; life = six years. Ignore the effect of taxes.
a. What is the accounting break-even quantity?=$291
b. What is the cash break-even quantity?
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