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A proposed project has fixed costs of $49,000 per year. The operating cash flow at 12,000 units is $86,000. Required: (a) Ignoring the effect of
A proposed project has fixed costs of $49,000 per year. The operating cash flow at 12,000 units is $86,000. |
Required: | |
(a) | Ignoring the effect of taxes, what is the degree of operating leverage? (Do not round your intermediate calculations.) |
(Click to select)2.75511.86801.71101.56981.2715 |
(b) | If units sold rise from 12,000 to 12,300, what will be the increase in operating cash flow? (Do not round your intermediate calculations.) |
(Click to select)3.18%4.27%3.92%6.89%4.66% |
(c) | What is the new degree of operating leverage? (Do not round your intermediate calculations.) |
(Click to select)1.84241.68761.24181.53311.5483 |
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