Operating leverage at financial break-even level of output

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A project has the following estimated data: price S62 per unit; variable costs S41 per unit fixed costs are S15,500; required return is 12 percent; initial investment is S24,000; life is four years. Ignoring the effect of taxes, what is the accounting break-even quantity? The cash break- even quantity? The financial break-even quantity? What is the degree of operating leverage at the financial break-even level of output? How do you interpret the calculated degree of operating?

Reference no: EM131826614

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