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please show your work Assume an industrial company has the following financial information: Assume the company is currently producing 5000 products, and it has the

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Assume an industrial company has the following financial information: Assume the company is currently producing 5000 products, and it has the two following options (projects) available for next year: A. Option 1 encompasses increasing the sales volume to 10000 products. This will lead to an increase in fixed cost of business by 80% of its current level, and 37% increase in interest expenses. B. Option 2 includes the application of smaller project and produce 6,500 products. This project will lead to a 44% increase in current variable cost per product. It also leads to a 90% increase in interest expenses. 1. Find the DOL and DFL of the company is Option 1 is applied next year (create a table similar to example in slides) 2. Find the DOL and DFL of the company is Option 2 is applied next year (create a table similar to example in slides) 3. Which option you recommend the company to apply is the expected economic situation in next year is Growth? 4. Which option you recommend the company to apply is the expected economic situation in next year is Recession? Assume an industrial company has the following financial information: Assume the company is currently producing 5000 products, and it has the two following options (projects) available for next year: A. Option 1 encompasses increasing the sales volume to 10000 products. This will lead to an increase in fixed cost of business by 80% of its current level, and 37% increase in interest expenses. B. Option 2 includes the application of smaller project and produce 6,500 products. This project will lead to a 44% increase in current variable cost per product. It also leads to a 90% increase in interest expenses. 1. Find the DOL and DFL of the company is Option 1 is applied next year (create a table similar to example in slides) 2. Find the DOL and DFL of the company is Option 2 is applied next year (create a table similar to example in slides) 3. Which option you recommend the company to apply is the expected economic situation in next year is Growth? 4. Which option you recommend the company to apply is the expected economic situation in next year is Recession

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