Question
A proposed project has fixed costs of $74,000 per year. The operating cash flow at 8,000 units is $93,400. Ignoring the effect of taxes, what
A proposed project has fixed costs of $74,000 per year. The operating cash flow at 8,000 units is $93,400. Ignoring the effect of taxes, what is the degree of operating leverage? (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.)
Degree of operating leverage |
If units sold rise from 8,000 to 8,500, what will be the new operating cash flow? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
Operating cash flow | $ |
What is the new degree of operating leverage? (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.) |
New DOL |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started