Question: A project has the following estimated data: price = $89 per unit; variable costs = $48.95 per unit; fixed costs = $7,900; required return =

A project has the following estimated data: price = $89 per unit; variable costs = $48.95 per unit; fixed costs = $7,900; required return = 8 percent; initial investment = $13,000; life = five years. Ignore the effect of taxes. a. What is the accounting break-even quantity? 262 b. What is the cash break-even quantity? 197 c. What is the financial break-even quantity? 279 d. What is the degree of operating leverage at the financial break-even level of output? 3.4263 1.8358 1.6240 1.2003 0.9885

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