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Problem 1 1 - 9 Calculating Break - Even [ LO 3 ] A project has the following estimated data: Price = $ 5 4

Problem 11-9 Calculating Break-Even [LO3]
A project has the following estimated data: Price =$54 per unit; variable costs =$34 per
unit; fixed costs =$17,000; required return =15 percent; initial investment =$30,000; life
= five years.
a. Ignoring the effect of taxes, what is the accounting break-even quantity? (Do not
round intermediate calculations and round your answer to 2 decimal places, e.g.,
32.16.)
b. What is the cash break-even quantity? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g.,32.16.)
c. What is the financial break-even quantity? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g.,32.16.)
d. What is the degree of operating leverage at the financial break-even level of output?
(Do not round intermediate calculations and round your answer to 3 decimal
places, e.g.,32.161.)
c. Financial break-even quantity
d. DOL
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