Business, 12.08.2020 05:01 santosv3136

Problem 11-5 Sensitivity Analysis and Break-Even [LO1, 3] We are evaluating a project that costs $560,400, has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 80,000 units per year. Price per unit is $38, variable cost per unit is $24, and fixed costs are $680,000 per year. The tax rate is 22 percent, and we require a return of 10 percent on this project. a-1. Calculate the accounting break-even point. (Do not round intermediate calculations and round your answer to the nearest whole number, e. g., 32.) a-2.What is the degree of operating leverage at the accounting break-even point

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Problem 11-5 Sensitivity Analysis and Break-Even [LO1, 3] We are evaluating a project that costs $56...

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