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A project has fixed costs of $ 2 , 1 0 0 per year, depreciation charges of $ 5 0 0 a year, annual revenue
A project has fixed costs of $ per year, depreciation charges of $ a year, annual revenue of $ variable costs equal to
twothirds of revenues and the tax rate is
a If sales increase by what will be the increase in pretax profits?
b What is the degree of operating leverage of this project?
Note: Round your answer to decimal place.
a Increase in pretax profits
b Degree of operating leverage
times
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