Consider a project with the following estimated data per unit: Price $ 60; Variable costs =...
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Consider a project with the following estimated data per unit: Price $ 60; Variable costs = $ 37; Fixed costs = $ 12,200 ; Required return = 15%; Initial Investment = $ 43,650; life = 5 years Ignoring the effect of taxes, calculate: a. Accounting break-even quantity! (10points) b. Financial break-even quantity! (10points) c. Degree of operating leverage at the accounting break-even level of output? (10points) Consider a project with the following estimated data per unit: Price $ 60; Variable costs = $ 37; Fixed costs = $ 12,200 ; Required return = 15%; Initial Investment = $ 43,650; life = 5 years Ignoring the effect of taxes, calculate: a. Accounting break-even quantity! (10points) b. Financial break-even quantity! (10points) c. Degree of operating leverage at the accounting break-even level of output? (10points)
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Answer rating: 100% (QA)
Here are the calculations a Accounting breakeven quantity Total fixed costs 12200 Contribution margi... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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