A project requires an initial investment of $1,100,000 and is depreciated linearly over its 10-year life to zero recovery. The project produces products that sell for $1,000 each at a variable cost of $600 per unit. Fixed costs are $400,000 per year.

a) What is the accounting breakeven, operating cash flow and DOL at this output level?

b) What is the cash flow break-even amount?

c) What is the financial break-even amount (assume the required rate of return is 10%)? 

What is DOL at a financial break-even amount?