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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 fouryear project with the following information: initial fixed asset investment
$; straightline depreciation to zero over the fouryear life; zero salvage value;
price $; variable costs $; fixed costs $; quantity sold units;
tax rate 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 decimal places, eg
b What is the degree of operating leverage at the accounting breakeven level of
output? Do not round intermediate calculations and round your answer to
decimal places, eg
a Degree of operating leverage
b Degree of operating leverage
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