Question: A project has the following estimated data: price = $52 per unit; variable costs = $34 per unit; fixed costs = $23,500; required return =

A project has the following estimated data: price = $52 per unit; variable costs = $34 per unit; fixed costs = $23,500; required return = 12 percent; initial investment = $30,000; life = three years.

What is the financial break-even quantity?

What is the degree of operating leverage at the financial break-even level of output?

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