explain steps! A project ha$ the following estimated data: price = $68 per unit;
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explain steps!
A project ha$ the following estimated data: price = $68 per unit; variable costs = $44 per unit; fixed costs = $18.000, required return = 10 percent; initial investment = $40,000; life = five years. Ignoring the effect of taxes, what is the accounting break-even quantity? (Round your answer to 2 decimal places, (e.g., 32.16)) Break-even quantity What is the cash break-even Quantity? (Round your answer to 2 decimal place$, (e.g.. 32.16)) Break-even quantity What is the financial break-even quantity? (Round your answer to 2 decimal places, (e.g., 32.16)) Break-even quantity What i$ the degree of operating leverage at the financial break-even level of output? (Round your answer to 3 decimal place$, (e.g.. 32.161))Explanation / Answer
1) Accounting Break Even Quantity = (18000+8000)/(88-44) = 590.91
2) Cash Break Even Quantity = (18000)/(88-44) = 409.09
3) Financial Break Even Quantity = (18000+40000*10%)/(88-44) = 500
4) DOL = 18000/0 = infinite
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