Question: 1. Suppose that a project has a DOL = 0.75. If the quantity being produced increases from 96 to 100, what is the expected percentage
1. Suppose that a project has a DOL = 0.75. If the quantity being produced increases from 96 to 100, what is the expected percentage change in operating cash flow?
A) 2.5%
B) 3.1%
C) 4.2%
D) 5.5%
E) 6.2%
2. Find the accounting break-even point given the following information: Price = $50 per unit; variable cost = $35 per unit; annual fixed costs = $50,000; depreciation = $10,000.
A) 1,160 units
B) 2,298 units
C) 3,333 units
D) 3,429 units
E) 4,000 units
3. What is the cash break-even point? Price = $100 per unit; variable cost = $24 per unit, fixed cost = $40,000 per year; depreciation = $10,000 per year. Assume a discount rate of 10%, project initial outlay of $100,000, project life of 10 years, and ignore taxes.
A)527 units
B)624 units
C)658 units
D)741 units
E) 1,130 units
4. What is the financial break-even point? Price = $100 per unit; variable cost = $24 per unit, fixed cost = $40,000 per year; depreciation = $10,000 per year. Assume a discount rate of 10%, project initial outlay of $100,000, project life of 10 years, and ignore taxes.
A)527 units
B)624 units
C)658 units
D)741 units
E) 1,130 units
plz choose an answer and explain in detail with formula
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