Question: A project has the following estimated data: price = $70 per unit; variable costs = $35.00 per unit; fixed costs = $7,300; required return =

A project has the following estimated data: price = $70 per unit; variable costs = $35.00 per unit; fixed costs = $7,300; required return = 15 percent; initial investment = $6,000; life = five years. Ignore the effect of taxes. What is the cash-break even quantity? What is the finanical break-even quantity?

What is the degree of operating leverage at the financial break-even level of output?

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