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Problem 1 1 - 9 Calculating Break - Even [ LO 3 ] A project has the following estimated data: Price = $ 5 2
Problem Calculating BreakEven LO
A project has the following estimated data: Price $ per unit; variable costs $ per unit; fixed costs $; required return percent; initial investment $; life three years.
a Ignoring the effect of taxes, what is the accounting breakeven quantity? Do not round intermediate calculations and round your answer to decimal places, eg
b What is the cash breakeven quantity? Do not round intermediate calculations and round your answer to decimal places, eg
c What is the financial breakeven quantity? Do not round intermediate calculations and round your answer to decimal places, eg
d What is the degree of operating leverage at the financial breakeven level of output? Do not round intermediate calculations and round your answer to decimal places, eg
tablea Accounting breakeven quantityb Cash breakeven quantityc Financial breakeven quantityd DOL
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