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P11-9 Calculating Break-Even [LO3] A project has the following estimated data: price = $87 per unit; variable costs = $45.24 per unit; fixed costs
P11-9 Calculating Break-Even [LO3] A project has the following estimated data: price = $87 per unit; variable costs = $45.24 per unit; fixed costs = $7,200; required return = 13 percent; initial investment = $14,000; life six years. Ignore the effect of taxes. a. What is the accounting break-even quantity? Accounting break-even quantity b. What is the cash break-even quantity? Cash break-even quantity c. What is the financial break-even quantity? Financial break-even quantity d. What is the degree of operating leverage at the financial break-even level of output? DOL
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