Question
You have projected the following cash flows for two different processes that can used to produce a new product: Automated Manual Units Sold 30,000 30,000
You have projected the following cash flows for two different processes that can used to produce a new product:
| Automated | Manual | |
|---|---|---|
| Units Sold | 30,000 | 30,000 |
| Sale Price (per unit) | $50 | $50 |
| Variable Costs | $20 | $30 |
| Fixed Costs | $200,000 | $100,000 |
Given these projections, which process provides the higher degree of operating leverage? What is its degree of operating leverage?
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State Owned Enterprise In The Western Economies
Authors: Raymond Vernon , Yair Aharoni
1st Edition
0415727596,1317917685
