Question: A project has the following estimated data: Price = $70 per unit: variable costs = $45 per unit, fixed costs = $19,500, required return =

A project has the following estimated data: Price = $70 per

A project has the following estimated data: Price = $70 per unit: variable costs = $45 per unit, fixed costs = $19,500, required return = 12 percent; Initial Investment = $24,000; life = six years. a. Ignoring the effect of taxes, what is the accounting break-even quantity? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the cash break-even quantity? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the financial break-even quantity? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the degree of operating leverage at the financial break-even level of output? (Do not round Intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a. Accounting break-even quantity b. Cash break-even quantity c. Financial break-even quantity d. DOL

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