Question: A project has the following estimated data: Price = $53 per unit Variable Cost = $22 per unit Fixed Cost = $31,460 Required Return =
A project has the following estimated data:
Price = $53 per unit
Variable Cost = $22 per unit
Fixed Cost = $31,460
Required Return = 12%
Initial Investment = $46,200
Life = 4 years
Ignoring the effect of taxes, what is the accounting break-even quantity? The cash break-even quantity? The financial break-even quantity? What is the degree of operating leverage at the financial break-even level output?
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