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4. A project has fixed costs of $800 per year, depreciation charges of $500 a year, annual revenue of $6000, and variable costs equal to

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4. A project has fixed costs of $800 per year, depreciation charges of $500 a year, annual revenue of $6000, and variable costs equal to two-thirds of revenues. a) If sales increase by 10%, what will be the increase in pretax profits? b) What is the degree of operating leverage of this project

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