P11-9 Calculating Break-Even [LO3] A project has the following estimated data: price = $89 per unit;...

 

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P11-9 Calculating Break-Even [LO3] A project has the following estimated data: price = $89 per unit; variable costs = $32.93 per unit; fixed costs = $6,500; required return = 8 percent; initial investment = $14,000; life = seven years. Ignore the effect of taxes. Required: (a) What is the accounting break-even quantity? (Do not round your intermediate calculations.) (Click to select) (b) What is the cash break-even quantity? (Do not round your intermediate calculations.) (Click to select) + (c) What is the financial break-even quantity? (Do not round your intermediate calculations.) (Click to select) + (d) What is the degree of operating leverage at the financial break-even level of output? (Do not round your intermediate calculations.) (Click to select) + P11-9 Calculating Break-Even [LO3] A project has the following estimated data: price = $89 per unit; variable costs = $32.93 per unit; fixed costs = $6,500; required return = 8 percent; initial investment = $14,000; life = seven years. Ignore the effect of taxes. Required: (a) What is the accounting break-even quantity? (Do not round your intermediate calculations.) (Click to select) (b) What is the cash break-even quantity? (Do not round your intermediate calculations.) (Click to select) + (c) What is the financial break-even quantity? (Do not round your intermediate calculations.) (Click to select) + (d) What is the degree of operating leverage at the financial break-even level of output? (Do not round your intermediate calculations.) (Click to select) +

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a Accounting breakeven quantity 6500 14000 7 89 3293 8500 5607 152 b ... View the full answer