Operating leverage at financial break-even level of output

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A project has the following estimated data: price = $89 per unit; variable costs = $33.82 per unit; fixed costs = $5,100; required return = 10 percent; initial investment = $11,000; life = seven years. Ignore the effect of taxes.

What is the financial break-even quantity?

What is the degree of operating leverage at the financial break-even level of output?

Reference no: EM13885325

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Operating leverage at financial break-even level of output : A project has the following estimated data: price = $89 per unit; variable costs = $33.82 per unit; fixed costs = $5,100; required return = 10 percent; initial investment = $11,000; life = seven years. Ignore the effect of taxes. What is the financia..

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