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Intro Consider a project with a 3-year life and no salvage value. The initial cost to set up the project is $100,000. This amount is
Intro Consider a project with a 3-year life and no salvage value. The initial cost to set up the project is $100,000. This amount is to be linearly depreciated to zero over the life of the project. The price per unit is $60, variable costs are $48 per unit and fixed costs are $10,000 per year. The project has a required return of 14%. Ignore taxes. Part 1 Attempt 1/10 for 10 pts. How many units must be sold for the project to achieve accounting break-even? Part 2 Attempt 1/10 for 10 pts. How many units must be sold for the project to achieve cash break-even? Part 3 Attempt 1/10 for 10 pts. How many units must be sold for the project to achieve financial break-even? What is the degree of operating leverage at the financial break-even
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