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Consider a four - year project with the following information: initial fixed asset investment = $ 5 5 0 , 0 0 0 ; straight

Consider a four-year project with the following information: initial fixed asset investment
=$550,000; straight-line depreciation to zero over the four-year life; zero salvage value;
price =$36; variable costs =$24; fixed costs =$225,000; quantity sold =76,000 units;
tax rate =23 percent.
a. What is the degree of operating leverage at the given level of output? (Do not round
intermediate calculations and round your answer to 4 decimal places, e.g.,
32.1616.)
b. What is the degree of operating leverage at the accounting break-even level of
output? (Do not round intermediate calculations and round your answer to 4
decimal places, e.g.,32.1616.)
a. Degree of operating leverage
b. Degree of operating leverage
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