Question: BE CLEAR PLEASE. THANK YOU! A proposed project has fixed costs of $48,000 per year. The operating cash flow at 16,000 units is $86,000. a.

BE CLEAR PLEASE. THANK YOU! A proposed project has fixed costs of $48,000 per year. The operating cash flow at 16,000 units is $86,000. BE CLEAR PLEASE. THANK YOU!

A proposed project has fixed costs of $48,000 per year. The operating cash flow at 16,000 units is $86,000. a. Ignoring the effect of taxes, what is the degree of operating leverage? DOL 1.5581 2.7917 1.8542 1.6984 b. If units sold rise from 16,000 to 16,300, what will be the increase in operating cash flow? OCF at 16,300 units 2.92% 2.92% 5.23% 3.47% 3.18% 2.37% c. What is the new degree of operating leverage? New DOL N 1.5423 1.5304 1.8353 1.6811

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