Question: A proposed project has fixed costs of 84 000 per year
A proposed project has fixed costs of $84,000 per year. The operating cash flow at 7,500 units is $93,200. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rise from 7,500 to 8,000, what will be the increase in operating cash flow? What is the new degree of operating leverage?
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