What is the accounting break-even quantity

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A project has the following estimated data: price = $72 per unit; variable costs = $26.64 per unit; fixed costs = $7,800; required return = 16 percent; initial investment = $11,000; life = five years. Ignore the effect of taxes.

(a) What is the accounting break-even quantity? (Do not round your intermediate calculations.)

(b) What is the cash break-even quantity? (Do not round your intermediate calculations.)

(c) What is the financial break-even quantity? (Do not round your intermediate calculations.)

(d) What is the degree of operating leverage at the financial break-even level of output? (Do not round your intermediate calculations.)

Reference no: EM131696995

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