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A proposed project has fixed costs of $89,000 per year. The operating cash flow at 10,400 units is $127,400. Ignore the effect of taxes. a.
A proposed project has fixed costs of $89,000 per year. The operating cash flow at 10,400 units is $127,400. Ignore the effect of taxes. |
a. | What is the degree of operating leverage? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) |
b. | If units sold rise from 10,400 to 11,100, 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 3 decimal places, e.g., 32.161.) |
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