Question: A project has the following estimated data: price = $70 per unit; variable costs = $30.80 per unit; fixed costs = $5,800; required return =

A project has the following estimated data: price = $70 per unit; variable costs = $30.80 per unit; fixed costs = $5,800; required return = 17 percent; initial investment = $8,000; life = seven years. Ignore the effect of taxes.

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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