Question: A project has the following estimated data: price = $89 per unit; variable costs = $41.83 per unit; fixed costs = $7,300; required return =
A project has the following estimated data: price = $89 per unit; variable costs = $41.83 per unit; fixed costs = $7,300; required return = 13 percent; initial investment = $9,000; life = six years. Ignore the effect of taxes.
1. What is the financial break-even quantitiy?
2. What is the degree of operating leverage at the financial break-even level of output?
If someone could help me figure out how to calculate these
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