Question: A project has the following estimated data: Price = $44 per unit; variable costs = $30 per unit; fixed costs = $17,500; required return =

A project has the following estimated data: Price = $44 per unit; variable costs = $30 per unit; fixed costs = $17,500; required return = 12 percent; initial investment = $35,000; life = five years.

a. Ignoring the effect of taxes, what is the accounting break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What is the cash break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. What is the financial break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
d. What is the degree of operating leverage at the financial break-even level of output? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

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