A project has the following estimated data: price = $82 per unit; variable costs = $41 per unit; fixed costs = $7,200; required return = 11 percent; initial investment = $7,000; life = seven years. Ignore the effect of taxes.
Required:
(a) What is the accounting break-even quantity? (Do not round your intermediate calculations.)
(b) What is the cash break-even quantity? (Do not round your intermediate calculations.)
(c) What is the financial break-even quantity? (Do not round your intermediate calculations.)
(d) What is the degree of operating leverage at the financial break-even level of output? (Do not round your intermediate calculations.)