Question
A proposed project has fixed costs of $82,000 per year. The operating cash flow at 6,200 units is $88,400. Ignore the effect of taxes. a.
| A proposed project has fixed costs of $82,000 per year. The operating cash flow at 6,200 units is $88,400. Ignore the effect of taxes. |
| a. | What is the degree of operating leverage? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) |
| b. | If units sold rise from 6,200 to 6,700, what will be the new operating cash flow? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| c. | What is the new degree of operating leverage? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) |
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Social Responsibility Audit A Management Tool For Survival
Authors: John W Humble
1st Edition
0900853522, 978-0900853524
