Question: A project has the following estimated data: price = $71 per unit; variable costs = $36.92 per unit; fixed costs = $7,700; required return =



A project has the following estimated data: price = $71 per unit; variable costs = $36.92 per unit; fixed costs = $7,700; required return = 15 percent; initial investment = $6,000; life = three years. Ignore the effect of taxes. a. What is the accounting break-even quantity? b. What is the cash break-even quantity? s c. What is the financial break-even quantity? d. What is the degree of operating leverage at the financial break-even level of output
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