Question: I A project has the following estimated data: per unit Price = $50 per unit Variable Cost = $30 Fixed Cost = $22,000 Required return

I A project has the following estimated data: per unit Price = $50 per unit Variable Cost = $30 Fixed Cost = $22,000 Required return = 10% Initial Investment = $32,000 Life of the project = 4 years Salvage value = 0 a) Ignoring the effect of the taxes, what is the financial break-even quantity? (5 pts) b) What is the degree of operating leverage at the financial break-even quantity? (5 pts) c) If sales increase by 5%, how much will the operating cash flow be? (5 pts)

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