A project has fixed costs of $2,100 per year, depreciation charges of $300 a year, annual revenue
Fantastic news! We've Found the answer you've been seeking!
Question:
A project has fixed costs of $2,100 per year, depreciation charges of $300 a year, annual revenue of $16,200, and variable costs equal to two-thirds of revenues.
a.If sales increase by 20%, what will be the percentage increase in pretax profits?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
b.What is the degree of operating leverage of this project?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
Expert Answer:
Posted Date:
