Question: 29 A project has the following estimated data: price = $90 per unit, variable costs $3780 per unit: fixed costs $5,800, required return 10 percent.

29 A project has the following estimated data: price = $90 per unit, variable costs $3780 per unit: fixed costs $5,800, required return 10 percent. Initial investment - $6,000 ilfe = seven years. Ignore the effect of taxes. a. What is the accounting break-even quantity? 00 SO SO Accounting break even quantity 128 b. What is the cash break-even quantity? 128 Cash break-even quantity c. What is the financial break even quantity? Financial break-even quantity 135 162 149 122 d. What is the degree of operating leverage of the financial break even level of output? DOL 5.7061 1.5762 1.3944 1.0306
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
