Qusetion: A project has the following estimated data: price = $74 per unit; variable costs = $47 per unit; fixed costs = $22,500; required return = 8 percent; initial investment = $24,000; life = three years.
Ignoring the effect of taxes, what is the accounting break-even quantity? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Break-even quantity
What is the cash break-even quantity? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Break-even quantity
What is the financial break-even quantity? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Break-even quantity
What is the degree of operating leverage at the financial break-even level of output? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.)
DOL