Question
A proposed project has fixed costs of $80,000 per year. The operating cash flow at 7,700 units is $93,600. Ignoring the effect of taxes, what
A proposed project has fixed costs of $80,000 per year. The operating cash flow at 7,700 units is $93,600. 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 7,700 to 8,200, 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 |
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