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Problem 11-13 Operating Cash Flow and Leverage (L04] A proposed project has fixed costs of $104.000 per year. The operating cash flow at 8100 units
Problem 11-13 Operating Cash Flow and Leverage (L04] A proposed project has fixed costs of $104.000 per year. The operating cash flow at 8100 units is $68,000. Ignore the effect of taxes a. What is the degree of operating leverage? (Do not found intermediate calculations and round your answer to 4 decimal places, e.g. 32.1616.) b. If units sold rise from 8.100 to 8.600, what will be the new operating cash flow? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the new degree of operating leverage? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g. 32.1616.) DOL b. New operating cash flow c. New DOL
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