A proposed project has fixed costs of $83,000 per year. The operating cash flow at 9,100 units
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A proposed project has fixed costs of $83,000 per year. The operating cash flow at 9,100 units is $102,900. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rise from 9,100 to 9,500, what will be the increase in operating cash flow? What is the new degree of operating leverage?
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861704
11th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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