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All answers must be entered as a formula. Click OK to begin. OK 1 2. 3 A proposed project has fixed costs of $83,000 per
All answers must be entered as a formula. Click OK to begin. OK 1 2. 3 A proposed project has fixed costs of $83,000 per year. The operating cash flow at 9,100 units is $102,900. Ignoring the effect of taxes, what is the degree of operating 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? 4 5 6 7 Fixed costs Units sold OCF New units sold 83,000 9,100 102,900 9,500 8 9 10 Complete the following analysis. Do not hard code values in your calculations. Original DOL Percentage change in quantity Percentage change in OCF New OCF New DOL
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