Question: A project has the following estimated data: price = $74 per unit; variable costs = $40.7 per unit; fixed costs = $7,700; required return =

A project has the following estimated data: price = $74 per unit; variable costs = $40.7 per unit; fixed costs = $7,700; required return = 17 percent; initial investment = $14,000; life = six 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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