Question: A project has the following estimated data: price = $86 per unit; variable costs = $50.74 per unit; fixed costs = $5,300; required return =

A project has the following estimated data: price = $86 per unit; variable costs = $50.74 per unit; fixed costs = $5,300; required return = 11 percent; initial investment = $7,000; life = three years. Ignore the effect of taxes.

a. What is the accounting break-even quantity?

b. What is the cash break-even quantity?

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