Question: A project has the following estimated data: price = $80 per unit; variable costs = $40 per unit; fixed costs = $10,000; required return =

  1. A project has the following estimated data: price = $80 per unit; variable costs = $40 per unit; fixed costs = $10,000; required return = 10 percent; initial investment = $12,000; life = 5 years. Ignore the effect of taxes. What is the degree of operating leverage at the financial break-even level of output?

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