Question 7 (12 Marks) Smith Brothers has annual fixed costs of $150,000, EBIT of $600,000 and depreciation and amortization charges of $55,000. They also have variable costs of $5 per unit and sell items for $12 per unit. (3 Marks) Answer to 2 decimal places. a) Calculate the Cash Flow DOL Answer: b) Calculate the Accounting DOL Answer: c) Calculate the Cash Flow Break Even Answer: d) Calculate the Accounting Break Even Answer: Jones Brothers has two possible investment alternatives summarised below: Project A Project B Fixed Costs $2m $225,000 $190,000 $60,000 Depreciation and Amortisation $24 $24 Sale price per unit Variable Cost per unit $6 $13 e) Calculate the cash flow crossover level of unit sales. Answer: f) Calculate the accounting cross over level of unit sales