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A project has the following estimated data: price = $89 per unit; variable costs = $33.82 per unit; fixed costs = $5,100; required return =
A project has the following estimated data: price = $89 per unit; variable costs = $33.82 per unit; fixed costs = $5,100; required return = 10 percent; initial investment = $11,000; life = seven years. Ignore the effect of taxes.
What is cash break-even quantity?
92
121
83
87
74
What is the financial break-even quantity?
160
146
120
106
133
What is the accounting break-even quanity?
145
92
115
121
133
What is the degree of operating leverage at the financial break-even level of output?
1.6595
3.2572
1.8759
1.2266
1.0101
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