A project has the following estimated data price $89 per unit variable costs $33 82 per unit fixed costs $5,100 required return 10 percent initial investment $11,000 life seven years Ignore the effect of taxes What is cash break even quantity 92 121 83 87 74 What is the financial break even quantity 160 146 120 106 133 What is the accounting break even quanity 145 92 115 121 133 What is the degree of operating leverage at the financial break even level of output 1 6595 3 2572 1 8759 1 2266 1 0101

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Question: A project has the following estimated data: price = $89 per unit; variable costs = $33.82 per unit; fixed costs = $5,100; required return =

A project has the following estimated data: price = $89 per unit; variable costs = $33.82 per unit; fixed costs = $5,100; required return = 10 percent; initial investment = $11,000; life = seven years. Ignore the effect of taxes.

What is cash break-even quantity?

121

What is the financial break-even quantity?

160

146

120

106

133

What is the accounting break-even quanity?

145

115

121

133

What is the degree of operating leverage at the financial break-even level of output?

1.6595

3.2572

1.8759

1.2266

1.0101

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