What is the accounting break-even quantity

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Reference no: EM13915406

A project has the following estimated data: price = $79 per unit; variable costs = $46.61 per unit; fixed costs = $5,600; required return = 12 percent; initial investment = $6,000; life = six years. Ignore the effect of taxes.

Required:

(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.)

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

Reference no: EM13915406

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