Question: 2 A project has the following estimated data:price = $70 per unit: variable costs = $55 per unit: fixed costs $20,900; required return 12%; Initial
2 A project has the following estimated data:price = $70 per unit: variable costs = $55 per unit: fixed costs $20,900; required return 12%; Initial Investment = $28,400; life = four years. Ignoring the effect of taxes, what is the accounting break-even quantity? (Round the final answer to 2 decimal places.) Break-even quantity What is the cash break-even quantity? (Round the final answer to 2 decimal places.) Break-even quantity What is the financial break-even quantity? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Break-even quantity What is the degree of operating leverage at the financial break-even level of output? (Do not round Intermediate calculations. Round the final answer to 3 decimal places.) DOL
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