Question
A proposed project has fixed costs of $36,000 per year. The operating cash flow at 11,000 units is $61,000. a. Ignoring the effect of taxes,
| A proposed project has fixed costs of $36,000 per year. The operating cash flow at 11,000 units is $61,000. |
| a. Ignoring the effect of taxes, what is the degree of operating leverage? b. If units sold rise from 11,000 to 11,400, what will be the increase in operating cash flow? |
| c. What is the new degree of operating leverage? |
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The Basics Of Public Budgeting And Financial Management
Authors: Charles E. Menifield
4th Edition
0761872116, 978-0761872115
