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Martelli Drywall Manufacturing is analyzing a new type of drywall sealant for interior walls. Management has compiled the following information to determine whether or not
Martelli Drywall Manufacturing is analyzing a new type of drywall sealant for interior walls. Management has compiled the following information to determine whether or not this new sealant should be manufactured.Projected fixed costs are $782,320 and the anticipated annual operating cash flow is $254,000.The sealant project has an initial fixed asset requirement of $1,750,000, which would be depreciated straight-line to zero over the 10-year life of the project. What is the degree of operating leverage for this project?
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