Question: A project has the following estimated data: price = $76 per unit; variable costs = $28.12 per unit; fixed costs = $7,900; required return =
| A project has the following estimated data: price = $76 per unit; variable costs = $28.12 per unit; fixed costs = $7,900; required return = 11 percent; initial investment = $12,000; life = five years. Ignore the effect of taxes. |
| Required: |
| (a) | What is the accounting break-even quantity? (Do not round your intermediate calculations.) |
| (Click to select)258237165215204 |
| (b) | What is the cash break-even quantity? (Do not round your intermediate calculations.) |
| (Click to select)215132157165149 |
| (c) | What is the financial break-even quantity? (Do not round your intermediate calculations.) |
| (Click to select)280233186256210 |
| (d) | What is the degree of operating leverage at the financial break-even level of output? (Do not round your intermediate calculations.) |
| (Click to select)3.43311.19931.62261.83430.9877 |
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