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A proposed project has fixed costs of $41,000 per year. The operating cash flow at 14,000 units is $75,000. Required: (a) Ignoring the effect of
| A proposed project has fixed costs of $41,000 per year. The operating cash flow at 14,000 units is $75,000. |
| Required: | |
| (a) | Ignoring the effect of taxes, what is the degree of operating leverage? (Do not round your intermediate calculations.) |
| (Click to select)1.84051.54671.68591.25282.8293 | |
| (b) | If units sold rise from 14,000 to 14,200, what will be the increase in operating cash flow? (Do not round your intermediate calculations.) |
| (Click to select)4.04%2.41%2.63%1.79%2.21% |
| (c) | What is the new degree of operating leverage? (Do not round your intermediate calculations.) |
| (Click to select)1.52541.67301.53481.23561.8265 |
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