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A project requires an initial investment of $20,000,000 and is depreciated straight-line to zero salvage over its 8-year life. The project produces items that sell
A project requires an initial investment of $20,000,000 and is depreciated straight-line to zero salvage over its 8-year life. The project produces items that sell for $1,800 each, with variable costs of $440 per unit. Fixed costs are $1,200,000 per year. If the Company is selling 4,800 units of this product, what is Degree of Operating Leverage (DOL)?
1.71 | ||
1.31 | ||
1.96 | ||
1.42 | ||
2.31 |
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