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A project has fixed costs of $2,400 per year, depreciation charges of $300 a year, annual revenue of $21,600 and variable costs equal to two-thirds
A project has fixed costs of $2,400 per year, depreciation charges of $300 a year, annual revenue of $21,600 and variable costs equal to two-thirds of revenues.
A.) if sales increase by 19%, what will be the percentage increase in pretax profits?
B.) what is the degree of operating leverage of this project?
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