Harrison Brothers are in the process of expanding their business. Project A has annual fixed costs of $2,500,000 while project B has annual fixed costs of $1.5m. Project A has depreciation and amortization of $500,000 and project B has depreciation and amortisation of $300,000. These projects relate to radio antennas. These antennas will sell for $50 each. The variable costs for project A are $20 and $30 for project B. The EBIT of project A 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 and accounting cross over levels?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Harrison Brothers are in the process of expanding their business. Project A has annual fixed costs of $2,500,000
while project B has annual fixed costs of $1.5m. Project A has depreciation and amortization of $500,000 and
project B has depreciation and amortisation of $300,000. These projects relate to radio antennas. These
antennas will sell for $50 each. The variable costs for project A are $20 and $30 for project B. The EBIT of project
A 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 and
accounting cross over levels?
Transcribed Image Text:Harrison Brothers are in the process of expanding their business. Project A has annual fixed costs of $2,500,000 while project B has annual fixed costs of $1.5m. Project A has depreciation and amortization of $500,000 and project B has depreciation and amortisation of $300,000. These projects relate to radio antennas. These antennas will sell for $50 each. The variable costs for project A are $20 and $30 for project B. The EBIT of project A 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 and accounting cross over levels?
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