A project has the following estimated data Price $72 per unit variable costs $46 per unit fixed costs $21,000 required return 15 percent initial investment $42,000 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 )

The Answer is in the image, click to view ...

Question: A project has the following estimated data: Price = $72 per unit; variable costs = $46 per unit; fixed costs = $21,000; required return =

A project has the following estimated data: Price = $72 per unit; variable costs = $46 per unit; fixed costs = $21,000; required return = 15 percent; initial investment = $42,000; 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.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is...

You are evaluating two different silicon wafer milling machines. The Techron I costs $ 2 6 4 , 0 0 0 , has a three - year life, and has pretax operating costs of $ 7 1 , 0 0 0 per year. The Techron...

A project has the following estimated data: price = $72 per unit; variable costs = $46 per unit; fixed costs = $21,000; required return = 15 percent; initial investment = $42,000; life = six years....

Randall's Ales & Porters S.A., is considering expanding into Costa Rica. As an incentive, Costa Rica agrees not to charge the company any taxes. The project has the following estimated data: price =...

A project has the following estimated data: price = $72 per unit; variable costs = $26.64 per unit; fixed costs = $7,800; required return = 16 percent; initial investment = $11,000; life = five...

A project has the following estimated data: price = $72 per unit; variable costs = $27.36 per unit; fixed costs = $8,000; required return = 14 percent; initial investment = $7,000; life = six years....

A project has the following estimated data: price = $72 per unit; variable costs = $42.48 per unit; fixed costs = $6,600; required return = 16 percent; initial investment = $12,000; life = six years....

Please answer parts a-d of the question above. Thank you! I uploaded clearer pictures A project has the following estimated data: price =$72 per unit, variable costs =$34.56 per unit, fixed costs...

A project has the following estimated data: price = $72 per unit; variable costs = $34.56 per unit; fixed costs = $5,600; required return = 10 percent; initial investment = $9,000; life = three...

A project has the following estimated data: price = $62 per unit; variable costs = $41 per unit; fixed costs are $15,500; required return is 12 percent; initial investment is $24,000; life is four...

Calculate the mass fraction stochiometric ratio for the combustion of Ethane (CHs) in air (20% v/v Oz 80% v/v N2) Given the following Atomic Weights for the elements and their valencies." Symbol...

A time study was conducted on a job that contains four tasks. Tire observations and performance ratings for six cycles are shown in tire following table. a. Calculate the average time for each task....

Which of the following statements are true? ( Check all that apply. ) Group of answer choicesOnce the component budgets are completed, they can be treated as final, regardless of what the initial...

8:37 * N. 80% i ... OBJECTIVES: Create relationships Create a Pivot Table from Related Tables Create a PivotChart Modify the PivotChart The major section in this chapter :ontinuation is: Data...

8. The economys current level of equilibrium GDP is $780 billion. The full employment level of GDP is $800 billion. The multiplier is 4. Given those facts, we know that the economy faces expenditure...

8. last word What is Says law? How does it relate to the view held by classical economists that the economy generally will operate at a position on its production possibilities curve (Chapter 1)? Use...

4. Other things equal, what effect will each of the following changes independently have on the equilibrium level of real GDP in the private closed economy? LO31.5 a. A decline in the real interest...