A project has the following estimated data: price = $71 per unit; variable costs = $39.05 per unit; fixed costs = $6,600
Posted: Wed Mar 09, 2022 8:38 am
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?
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?