Consider a project with a $6-$year life and no salvage value. The initial cost to set up the project is $$100,000.$ This amount is to be linearly depreciated to zero over the life of the project.

The price per unit is $$60,$ variable costs are $$48$ per unit and fixed costs are $$10,000$ per year. The project has a required return of $15\%.$ Ignore taxes.

How many units must be sold for the project to achieve financial break$-$even?

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