A project has the following estimated data: price = $75 per unit; variable costs = $29.25 per unit; fixed costs = $5,200; required return = 9 percent; initial investment = $9,000; life = seven years. Ignore the effect of taxes.

a. What is the accounting break-even quantity?

• 142
• 114
• 170
• 156
• 135

b. What is the cash break-even quantity?

• 114
• 142
• 108
• 91
• 103

c. What is the financial break-even quantity?

• 153
• 184
• 168
• 138
• 122

d. What is the degree of operating leverage at the financial break-even level of output?

• 3.9079
• 1.7471
• 1.5455
• 1.1423
• 0.9407