P11-9 Calculating Break-Even [LO3]

A project has the following estimated data: price = $94 per unit; variable costs = $47.94 per unit; fixed costs = $6,800; required return = 10 percent; initial investment = $9,000; life = five years. Ignore the effect of taxes.

Required:

(a)	What is the accounting break-even quantity? (Do not round your intermediate calculations.)
	1) 224 2) 148 3) 206 4) 178 5) 187

(b)	What is the cash break-even quantity? (Do not round your intermediate calculations.)
	1) 133 2) 118 3) 187 4) 148 5) 141

(c)	What is the financial break-even quantity? (Do not round your intermediate calculations.)
	1) 219 2) 159 3) 239 4) 179 5) 199

(d)	What is the degree of operating leverage at the financial break-even level of output? (Do not round your intermediate calculations.)
	1) 0.9444 2) 3.8642 3) 1.5515 4) 1.7539 5) 1.1468