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Calculating Break-Even Ignoring the effect of taxes, a) what is accounting breakeven quantity? b) The cash breakeven quantity? c) The financial breakeven quantity? d) What
Calculating Break-Even Ignoring the effect of taxes, a) what is accounting breakeven quantity? b) The cash breakeven quantity? c) The financial breakeven quantity? d) What is the degree of operating leverage at the financial break-even level of output? \begin{tabular}{|l|cr|} \hline Price per unit & $ & 54 \\ \hline Variable cost per unit & $ & 36 \\ \hline Fixed costs & $ & 19,300 \\ \hline Required return & & 12% \\ \hline Initial investment & $ & 26,800 \\ \hline life & & 4 years \\ \hline \end{tabular} Output Area a) Accounting breakeven quantity b) Cash breakeven quantity OCF* c) Financial breakeven quantity d) DOL
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