Question
A project has fixed costs of $700 per year, depreciation charges of $200 per year, annual revenue of $4500, and variable costs equal to two-
A project has fixed costs of $700 per year, depreciation charges of $200 per year, annual revenue of $4500, and variable costs equal to two- thirds of revenues. If sales increase by 11%. what will be the percentage increase in pretax profits? What is the degree of operating leverage for this project?
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International Financial Management
Authors: Jeff Madura, Roland Fox
5th Edition
1473770505, 978-1473770508
