Question: A project has the following estimated data: price = $63 per unit; variable costs = $47 per unit; fixed costs = $20,200; required return =
A project has the following estimated data: price =$63 per unit; variable costs =$47 per unit; fixed costs =$20,200; required return = 12%; initial investment =$27,700; life = four years. Ignoring the effect of taxes, what is the accounting break-even quantity? (Round the final answer to 2 decimal places.) Break-even quantity What is the cash break-even quantity? (Round the final answer to 2 decimal places.) Break-even quantity What is the financial break-even quantity? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Break-even quantity What is the degree of operating leverage of the financial break-even level of output? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) DOL
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
