Question: A project has the following estimated data: price = $57 per unit; variable costs = $31.35 per unit; fixed costs = $7,000; required return =

A project has the following estimated data: price = $57 per unit; variable costs = $31.35 per unit; fixed costs = $7,000; required return = 13 percent; initial investment = $10,000; life = six years. Ignore the effect of taxes. What is the accounting break-even quantity? What is the cash break-even quantity? 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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