A project has the following estimated data: price = $71 per unit; variable costs = $39.05 per unit; fixed costs = $6,600

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

A project has the following estimated data: price = $71 per unit; variable costs = $39.05 per unit; fixed costs = $6,600

Post by answerhappygod »

A project has the following estimated data: price = $71 per
unit; variable costs = $39.05 per unit; fixed costs = $6,600;
required return = 9 percent; initial investment = $8,000; life =
six years. Ignore the effect of taxes.
a. What is the accounting break-even quantity?
b. What is the cash break-even quantity?
c. What is the financial break-even quantity?
d. What is the degree of operating leverage at the financial
break-even level of output?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”