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Problem:

Consider a project with the following data: accounting break-even quantity = 4,250 units; cash break-even quantity = 3,750 units; life = ten years; fixed costs = $180,000; variable costs = $32 per unit; required return = 8 percent.

Required:

Ignoring the effect of taxes, find the financial break-even quantity.

Note: Please show basic calculation

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91166877

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