Question: A project has the following estimated data: price = $ 1 0 0 per unit; variable costs = $ 4 0 . 0 0 per

A project has the following estimated data: price = $100 per unit; variable costs = $40.00 per unit; fixed costs = $7,400; required return =15 percent; initial investment = $10,000; life = six years. Ignore the effect of taxes.
a. What is the accounting break-even quantity?
b. What is the cash break-even quantity?
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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