Question: Operating Leverage Use the results of problem 26 to find the degree of operating leverage for the company in problem 27 at the base-case output

Operating Leverage Use the results of problem 26 to find the degree of operating leverage for the company in problem 27 at the base-case output level of 45,000 units how does this number compare to the sensitivity figure you found in problem 28? Verify that either approach will given you the same OCF figure at any new quantity level.

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Using the tax shield approach to calculate the OCF the DOL is DOL 1 4500001 038 038190... View full answer

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