Question: A project has the following estimated data: price = $52 per unit; variable costs = $33 per unit; fixed costs = $15,500; required return =

A project has the following estimated data: price = $52 per unit; variable costs = $33 per unit; fixed costs = $15,500; required return = 12 percent; initial investment = $32,000; life = four years.

Ignoring the effect of taxes, what is the accounting break-even quantity? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Break-even quantity

What is the cash break-even quantity? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Break-even quantity

What is the financial break-even quantity? (Do not round intermediate calculations. 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? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.)

DOL

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