A project requires an initial investment of 2,000,000 riyals, and depreciation is carried out in a straight line method (straight line) to zero (there is no liquidation value) over a lifespan of 5 years. The project produces units sold at 200 riyals each, with variable costs of 80 riyals per unit. The fixed costs are 600,000 riyals annually. What is the quantity at the accounting break-even point, the operating cash flow at the accounting break-even point, and the DOL at that level of production?

Answer rating: 100% (QA)

Break even point Contribution Margin per unit Sell... View the full answer