Question: A project has the following estimated data: price = $ 8 5 per unit; variable costs = $ 4 0 . 8 0 per unit;

A project has the following estimated data: price = $85 per unit; variable costs = $40.80 per unit; fixed costs = $6,300; required return =12 percent; initial investment = $11,000; life = seven years. Ignore the effect of taxes.
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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