What is the financial break even quantity

Assignment Help Financial Management

Reference no: EM13915034

A project has the following estimated data: price=$72 per unit; variable costs=$46 per unit; fixed costs=$21,000; required return=15 percent; initial investment =$42,000; life=six years. Ignoring the effect of taxes, what is the accounting break even quantity? What is the cash break even quantity? What is the financial break even quantity? What is the degree of operating leverage at the financial break even level of output? Please show steps.

Reference no: EM13915034

Questions Cloud

Handling potentially sensitive information : You are a journalist for an up-and-coming online news website. You are inadvertently given some information that you know would increase your website's popularity, but could potentially compromise national security. What would "popularity" mean fo..

Major hrm activity in the next decade : Training organizational members how to be coaches and how to empower employees should be a major HRM activity in the next decade.

What fundamental principle of internal control is ignored : What is the weak point in this system? What fundamental principle of internal control is being ignored? What improvement in the procedure can you suggest?

Assignment on controls : As a quality analyst you are also responsible for controlling the weight of a box of cereal. The Operations Manager asks you to identify the ways in which statistical quality control methods can be applied to the weights of the boxes. Provide your..

What is the financial break even quantity : A project has the following estimated data: price=$72 per unit; variable costs=$46 per unit; fixed costs=$21,000; required return=15 percent; initial investment =$42,000; life=six years. Ignoring the effect of taxes, what is the accounting break even..

Different countries giving presentations : As a manager for a large, multinational corporation, you travel around the world to different countries giving presentations and conducting meetings. You always try to include humor as an icebreaker. What potential barriers could you face when del..

Calculate cash conversion cycle : Christie Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Christie's 2012 sales (all on credit) were $179,000; its cost of goods sold is 80% of sales; Calcula..

Determine the amount of revenue rice would report : Rice Company performed services on account for $30,000 in 2013, its first year of operations. Rice collected $24,000 cash from accounts receivable during 2013 and the remaining $6,000 in cash during 2014.

What is the probability of winning the jackpot : Gambling Visit www.flalottery.com and answer the following questions about the Florida Lottery. Clearly explain how each of the following probabilities is computed. What is the probability of winning the jackpot if you play the Florida Lotto

User Account

All Pages