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Carlton Industries is considering a new project that they plan to price at $74.00 per unit.The variable costs are estimated at $39.22 per unit and
Carlton Industries is considering a new project that they plan to price at $74.00 per unit.The variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085.The initial investment required is $8,000 and the project has an estimated life of 4 years.The firm requires a return of 8 percent.Ignore the effect of taxes. What is the degree of operating leverage at the financial break-even level of output?
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