What is the accounting break-even quantity

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Reference no: EM133094145

Question - A project has the following estimated data:

Price = $54 per unit

Variable costs = $36 per unit

Fixed costs = $19,300

Required return = 12%

Initial investment = $23,800

Life = 4 years

Required - Ignoring 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?

Reference no: EM133094145

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