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Problem 1 1 - 9 Calculating Break - Even [ LO 3 ] A project has the following estimated data: Price = $ 5 4
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
five 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
c Financial breakeven quantity
d DOL
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