Question: Please review the below the question for support with formula and solution. NASCAR is going to invest in new track cars to test car A.

Please review the below the question for support with formula and solution.

NASCAR is going to invest in new track cars to test car A. The cost of the equipment is $400,000. Car A will have a variable cost per unit of $75.00 and the sales price per unit will be $140.00. Fixed costs will be $80,000. The equipment is expected to have a life of eight years. NASCAR requires a return of 10% on their investments.

Required:

Ignore the effect of taxes; calculate the following. Round all your answers to two decimal points.

Accounting Break-even quantity Cash Break-even quantity Financial Break-even quantity Degree of operating leverage.

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