Ignoring the effect of taxes, find the financial break-even quantity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
9
Transcribed Image Text: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.
Ignoring the effect of taxes, find
the financial break-even quantity.
(Do not round intermediate
calculations and round your
answer to 2 decimal places, e.g.,
32.16.)
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