Item$3$

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Problem $11-9$ Calculating Break$-$Even $[$LO$3]$

A project has the following estimated data: Price $=$ $$56$ per unit; variable costs $=$ $$35$ per unit; fixed costs $=$ $$18,500$; required return $=8$ percent; initial investment $=$ $$45,000$; life $=$ five years.

a$.$

Ignoring the effect of taxes, what is the accounting break$-$even quantity? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What is the cash break$-$even quantity? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ What is the financial break$-$even quantity? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$.$ What is the degree of operating leverage at the financial break$-$even level of output? $($Do not round intermediate calculations and round your answer to $3$ decimal places, e$.$g$.,32\mathrm{.}161.)$Item$3$

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eBookHintReferencesCheck my workCheck My Work button is now enabledItem $3$

Problem $11-9$ Calculating Break$-$Even $[$LO$3]$

A project has the following estimated data: Price $=$ $$56$ per unit; variable costs $=$ $$35$ per unit; fixed costs $=$ $$18,500$; required return $=8$ percent; initial investment $=$ $$45,000$; life $=$ five years.

a$.$

Ignoring the effect of taxes, what is the accounting break$-$even quantity? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What is the cash break$-$even quantity? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ What is the financial break$-$even quantity? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$.$ What is the degree of operating leverage at the financial break$-$even level of output? $($Do not round intermediate calculations and round your answer to $3$ decimal places, e$.$g$.,32\mathrm{.}161.)$