Question

A project has the following estimated data: price = $58 per unit; variable costs = $26.68...

A project has the following estimated data: price = $58 per unit; variable costs = $26.68 per unit; fixed costs = $5,600; required return = 17 percent; initial investment = $13,000; life = six years. Ignoring the effect of taxes:

Question 1: The quantity where operating cash flow equals depreciation is ____ units. (Round your answer to 2 decimal places. (e.g., 32.16))

Question 2: The quantity where operating cash flow would be zero is ____ units. (Round your answer to 2 decimal places. (e.g., 32.16))

Question 3: The financial break-even quantity is ____ units. (Round your answer to 2 decimal places. (e.g., 32.16))

Question 4: The degree of operating leverage at the financial break-even level of output is ____ . (Round your answer to 3 decimal places. (e.g., 32.161))

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