Question: A project has the following estimated data: price = $54 per unit; variable costs = $34 per unit; fixed costs = $17,000; required return =
| A project has the following estimated data: price = $54 per unit; variable costs = $34 per unit; fixed costs = $17,000; required return = 15 percent; initial investment = $30,000; life = five 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 |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
