Question: A project has the following estimated data: price = $ 6 0 per unit; variable costs = $ 3 1 . 2 0 per unit;

A project has the following estimated data: price = $60 per unit; variable costs = $31.20 per unit; fixed costs = $5,500; required return =10 percent; initial investment = $13,000; life = six years. Ignore the effect of taxes. a. What is the accounting break-even quantity? b. What is the cash break-even quantity? c. What is the financial break-even quantity? d. What is the degree of operating leverage at the financial break-even level of output?

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