Operating leverage at financial break-even level of output

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A project has the following data: Price/Unit=$45. Variable Cost/Unit=$36. Fixed costs=$20,000. Required return-8%. Initial investment=$100,000. Life=4 yrs. Ignoring tax effects, what are the following: acct break-even; cash break even; financial break/even. What’s the degree of operating leverage at the financial break-even level of output?

Reference no: EM131081572

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