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A project has the following estimated data: price = $79 perunit; variable costs = $41.87 per unit; fixed costs = $6,900;required return = 9 percent; initial investment = $10,000; life =six years. Ignore the effect of taxes. a. What is the accounting break-evenquantity? b. What is the cash break-even quantity? c. What is the financial break-evenquantity? d. What is the degree of operating leverage atthe financial break-even level of output?
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