Problem:
A project has the following estimated data: price = $52 per unit; variable costs = $34 per unit; fixed costs = $23,500; required return = 12 percent; initial investment = $30,000; life = three years.
Required:
Question 1: Ignoring the effect of taxes, what is the accounting break-even quantity?
Question 2: What is the cash break-even quantity?
Question 3: What is the financial break-even quantity?
Question 4: What is the degree of operating leverage at the financial break-even level of output?
Note: Please explain comprehensively and give step by step solution.