Calculating Break-Even [LO3] A project has the following estimated data: price = $32 per unit; variable costs = $32 per unit: fixed costs - $9,000: required return = 12 percent: initial investment = $18,000: life = 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?
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