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Problem 11-9 Calculating Break-Even (LO3] A project has the following estimated data: Price $48 per unit: variable costs - $32 per unit, fixed costs =
Problem 11-9 Calculating Break-Even (LO3] A project has the following estimated data: Price $48 per unit: variable costs - $32 per unit, fixed costs = $20,500 required return = 8 percent initial investment-$36.000 life = six 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 found 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 found intermediate calculations and round your answer to 3 decimal places, e.g. 32.161.) a Accounting break-even quantity h Cash break-even quantity c. Financial break-even quantity d. DOL
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