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A project has the following estimated data: price =$78 per unit; varlable costs =$34.32 per unit; fixed costs =$6,900; required return =9 percent; initial investment
A project has the following estimated data: price =$78 per unit; varlable costs =$34.32 per unit; fixed costs =$6,900; required return =9 percent; initial investment =$12,000; life = six years. Ignore the effect of taxes. a. What is the accounting break-even quantity? b. What is the cash break-even quantity? c. What is the financial break-even quantity? d. What is the degree of operating leverage at the financial break-even level of output
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