Question
A proposed project has fixed costs of $82,000 per year. The operating cash flow at 6,200 units is $88,400. Ignorethe effect of taxes. a. What
A proposed project has fixed costs of $82,000 per year. The operating cash flow at 6,200 units is $88,400. Ignorethe 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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