Question
A proposed project has fixed costs of $78,000 per year. The operating cash flow at 4,500 units is $95,600. Ignoring the effect of taxes, what
A proposed project has fixed costs of $78,000 per year. The operating cash flow at 4,500 units is $95,600. Ignoring the effect of taxes, what is the degree of operating leverage? (Round your answer to 4 decimal places. (e.g., 32.1616)) |
Degree of operating leverage |
If units sold rise from 4,500 to 5,000, what will be the new operating cash flow? (Do not round intermediate calculations and round your final 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 and round your final answer to 4 decimal places. (e.g., 32.1616)) |
DOL |
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