Question
A proposed project has fixed costs of $83,000 per year. The operating cash flow at 9,100 units is $102,900. Ignoring the effed of taxes, what
A proposed project has fixed costs of $83,000 per year. The operating cash flow at 9,100 units is $102,900. Ignoring the effed of taxes, what is the degree of operaling leverage? If units sold rise from 9, 100 to 9,500, what will be the increase in operating cash flow? What is the new degree of operating leverage?
Fred costs $83,000
Units sold 9.100
OCF $102,900
Complete the following analysis. Do not hard code values in your calculations
Original DOL
Percentage change in quantity
Percentage change in OCF
New OGF
New DOL
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Overcoming Debt Achieving Financial Freedom
Authors: Cindy Zuniga-Sanchez
1st Edition
1119902320, 978-1119902324
