A project has the following estimated data: price = $44 per unit; variable costs = $30 per unit; fixed costs = $17,500; required return = 12 percent; initial investment = $35,000; life = five years.
Ignoring the effect of taxes, what is the accounting break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16))
Break-even quantity
What is the cash break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16))
Break-even quantity
What is the financial break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16))
Break-even quantity
What is the degree of operating leverage at the financial break-even level of output? (Round your answer to 3 decimal places. (e.g., 32.161))
DOL
| A project has the following estimated data: price = $44 per unit; variable costs = $30 per unit; fixed costs = $17,500; required return = 12 percent; initial investment = $35,000; life = five years. |
| Ignoring the effect of taxes, what is the accounting break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Break-even quantity |
| What is the cash break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Break-even quantity |
| What is the financial break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Break-even quantity |
| What is the degree of operating leverage at the financial break-even level of output? (Round your answer to 3 decimal places. (e.g., 32.161)) |
| DOL | |
Related questions
Problem 28-17 Break-Even Quantity
| The Harrington Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.0 percent per period. |
| Current Policy | New Policy | |||||
| Price per unit | $ | 74 | $ | 76 | ||
| Cost per unit | $ | 38 | $ | 38 | ||
| Unit sales per month | 3,200 | ? | ||||
| What is the break-even quantity for the new credit policy? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
