Question: 5. A project has the following estimated data: price = $74 per unit; variable costs = $47 per unit; fixed costs = $22,500; required return

A project has the following estimated data: price = $74 per unit; variable costs = $47 per unit; fixed costs = $22,500; required return = 8 percent; initial investment = $24,000; life = three years.

Ignoring the effect of taxes, what is the accounting break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16))

Break-even quantity

What is the cash break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16))

Break-even quantity

What is the financial break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16))

Break-even quantity

What is the degree of operating leverage at the financial break-even level of output? (Round your answer to 3 decimal places. (e.g., 32.161))

DOL

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