Question: Operating Cash Flow and Leverage A proposed project has fixed costs of $43,000 per year. The operating cash flow at 8,000 units is $79,000. Ignoring

Operating Cash Flow and Leverage A proposed project has fixed costs of $43,000 per year. The operating cash flow at 8,000 units is $79,000. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rise from 8,000 to 8,500, what will be the increase in operating cash flow? What is the new degree of operating leverage?

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The DOL of the project is DOL 1 4300079000 DOL 15443 If the quantity sold ... View full answer

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