A proposed project has fixed costs of ($20,000) per year. The operating cash flow at 7,000 units

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A proposed project has fixed costs of $$20,000$ per year. The operating cash flow at 7,000 units is $$55,000$.

Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rises from 7,000 to 7,300, what will be the increase in operating cash flow? What is the new degree of operating leverage?

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Fundamentals Of Corporate Finance

ISBN: 9780072313000

5th Edition

Authors: Stephen A Ross, Randolph W Westerfield

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Question Posted: May 23, 2024 05:04 AM

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A proposed project has fixed costs of ($20,000) per year. The operating cash flow at 7,000 units

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Fundamentals Of Corporate Finance

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