A project has the following estimated data: price = $54 per unit; variable costs

Question

A project has the following estimated data: price = $54 per unit; variable costs = $29.16 per unit;fixed costs = $6,100; required return = 16 percent; initial investment = $13,000; life = three years. Ignoring the effect of taxes, the accounting break-even quantity is( )units. (Round your answer to 2 decimal places. (e.g., 32.16))

The cash break-even quantity is(---------- )units.(Round your answer to 2 decimal places. (e.g., 32.16))

The financial break-even quantity is( --------)units.(Round your answer to 2 decimal places. (e.g., 32.16))

The degree of operating leverage at the financial break-even level of output is(------------- ) . (Round your answer to 3 decimal places.

Explanation / Answer

Answer:

1. Accounting break-even quantity (Units) = Total Fixed cost / (Sales Price

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