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We are evaluating a project that costs $786,000, has an eight-year life, and has no salvage value Assume that depreciation is straight-line to zero over
We are evaluating a project that costs $786,000, has an eight-year life, and has no salvage value Assume that depreciation is straight-line to zero over the life of the project Sales are projected at 65,000 units per year. Price per unit is $48, variable cost per unit is $25, and fixed costs are $725,000 per year. The tax rate is 22 percent, and we require a return of 10 percent on this project What is the degree of Operating leverage? O 1.9.983 O 2.4.89 O 3.12.89 4.8.379 2
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