question 3 a) Price RM54 per unit Variable cost RM30 per unit Fixed costs RM9,000 Required retur

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 depreciated straight line to zero over the life of the project. Ignoring the effect of taxes, calculate:

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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