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A proposed project has fixed costs of $39,000 per year. The operating cash flow at 7,000 units is $87,000. Round your final answers to two
A proposed project has fixed costs of $39,000 per year. The operating cash flow at 7,000 units is $87,000. Round your final answers to two decimals, i.e. 1.23. a. Ignoring the effect of taxes, what is the degree of operating leverage at the output level of 7,000 units? DOL b. If units sold rise from 7,000 to 7,300 , what will be the % increase in operating cash flow? % Increase in OCF c. What is the new degree of operating leverage at the new output level of 7,300 units? New DOL
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