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P11-7 Calculating Break-Even [LO3] Consider the following cases: Case 1 2 Unit Price $ 8,000 41 6 Unit Variable Cost $ 4,800 28.29 2.7 Fixed
P11-7 Calculating Break-Even [LO3] Consider the following cases: Case 1 2 Unit Price $ 8,000 41 6 Unit Variable Cost $ 4,800 28.29 2.7 Fixed Costs $ 15,000,000 15.000 1,800 Depreciation $ 6,600,000 34,500 1,350 Ignore any tax effects in calculating the cash break-even. 1a. Calculate the cash break-even point of Case 1. 1b. Calculate the accounting break-even point of Case 1. P11-13 Operating Cash Flow and Leverage (L04] A proposed project has fixed costs of $36,000 per year. The operating cash flow at 17,000 units is $61,000. a. Ignoring the effect of taxes, what is the degree of operating leverage? b. If units sold rise from 17,000 to 17,400, what will be the increase in operating cash flow? c. What is the new degree of operating leverage
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