our mother runs a successful widget company. She has hired you to evaluate an expansion that requires $955,000 in fixed assets that will have no salvage value when the project ends. The assets will be depreciated straight-line to zero over the 6-year life of the project.

Sales are projected at 87,000 units per year, and the price per unit is $36. The variable cost is $22 per unit, and fixed costs are $965,505 per year. The tax rate is 33 percent, and we require a 10 percent return on this project.

(a)	Calculate the accounting break-even point. (Do not round your intermediate calculations.)
	70,965 units Incorrect

(b)	What is the degree of operating leverage at the accounting break-even point? (Do not round your intermediate calculations.)