Question
Please do on Excel. A project has the following information: accounting break-even quantity = 13,400 units; cash break-even quantity = 10,600 units; life = 5
Please do on Excel. A project has the following information: accounting break-even quantity = 13,400 units; cash break-even quantity = 10,600 units; life = 5 years, straight line; fixed costs = $150,000; variable costs = $24 per unit; required return = 12%. Ignoring the effect of taxes, find the financial break-even quantity. 2. Modified. Current output is 70,000 units with DOL of 3.00. If output rises to 75,000 units, what will be the percentage change in the operating cash flow? Please do on Excel 3. In previous problem, suppose fixed costs are $150,000. What is the operating cash flow at 67,000 units? The degree of operating leverage? 4. A proposed project has fixed costs of $84,000 per year. The operating cash flow at 7,500 units is $93,200. Ignoring the effect of taxes, what is the degree of operating leveraging? If units sold rise from 7,500 to 8,000, what will be the increase in operating cash flow? What is the new degree of operating leverage? Please do on Excel
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started