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A project has the following estimated data: price =$200 per unit; variable costs =$150 per unit; fixed costs = $200,000; required retum =9%; initial investment
A project has the following estimated data: price =$200 per unit; variable costs =$150 per unit; fixed costs = $200,000; required retum =9%; initial investment =$1,500,000; No salvage value at the end of the project; life = 15 years. What is the degree of operating leverage (DOL) if 6000 units are produced, ignoring taxes? Select one: a. 2.5 b. 1.5 c. 1 d. 3 e. 2
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