Harrison Brothers are in the process of expanding their business. Project A has annual fixed costs of $2,500,000while project B has annual fixed costs of $1.5m. Project A has depreciation and amortization of $500,000 andproject B has depreciation and amortisation of $300,000. These projects relate to radio antennas. Theseantennas will sell for $50 each. The variable costs for project A are $20 and $30 for project B. The EBIT of projectA is $1,500,000 and the EBITDA of Project B is $800,000.Calculate the Cash Flow Cross Over Level of Unit Sales. what is the formula for cash flow cross over levels andaccounting cross over levels?

Answer information:Step 1:a. Cash flow cross over level of unit sales is the number of units for…

Answered: Harrison Brothers are in the process of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 8P

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