A project has an estimated sales price of $69 per unit, variable costs of $41.18 per unit, fixed costs of $62,000, a required return of12 percent, an initial investment of $68,500, no salvage value, and a life of 3 years. Ignore taxes. What is the degree of operating leverage at the financial break-even level of output?
A project has an estimated sales price of $69 per unit, variable costs of $41.18 per unit, fixed costs of $62,000, a required return of12 percent, an initial investment of $68,500, no salvage value, and a life of 3 years. Ignore taxes. What is the degree of operating leverage at the financial break-even level of output?
Related questions
| 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)) |
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| What is the cash break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16)) |
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| What is the financial break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16)) |
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| 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 | |
