Operating Leverage Use the results of Problem 10.26 to find the degree of operating leverage for the

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Operating Leverage Use the results of Problem 10.26 to find the degree of operating leverage for the company in Problem 10.27 at the base-case output level of 35,000 units. How does this number compare with the sensitivity figure you found in Problem 10.28? Verify that either approach will give you the same OCF figure at any new quantity level.

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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