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1. A project has fixed costs of $156K/year. The OCF at 12,000 units is $195K. (a) Ignoring any tax eects, what is the DOL? (b)

1. A project has fixed costs of $156K/year. The OCF at 12,000 units is $195K.

(a) Ignoring any tax eects, what is the DOL?

(b) If units sold rise from 12,000 to 13,800, what will be the new OCF?

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