question 3 a) Price RM54 per unit Variable cost RM30 per unit Fixed costs RM9,000 Required retur
question 3 a) Price RM54 per unit Variable cost RM30 per unit Fixed costs RM9,000 Required retur
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
question 3 a)
Price | RM54 per unit |
Variable cost | RM30 per unit |
Fixed costs | RM9,000 |
Required return | 15% |
Initial investment | RM18,000 |
Life | 4 years |
Assume the initial investment id
i) Accounting break-even quantity.
ii) Cash break-even quantity
iii) Financial break-even quantity
iv) Degree of operating leverage at financial break-even lvel of output.
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