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A project has the following estimated data: price = $97 per unit; variable costs

ID: 2701276 • Letter: A

Question

A project has the following estimated data: price = $97 per unit; variable costs = $36.86 per unit; fixed costs = $5,200; required return = 14 percent; initial investment = $10,000; life = seven years. Ignoring the effect of taxes, the accounting break-even quantity is ? units. (Round your answer to 2 decimal places.) The cash break-even quantity is ? units. (Round your answer to 2 decimal places) The financial break-even quantity is ? units. (Round your answer to 2 decimal places.) The degree of operating leverage at the financial break-even level of output is ?. (Round your answer to 3 decimal places!!!!!!)

Explanation / Answer

accounting break even qty =5200/60.14 =86.46 units

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