Question: Consider a four - year project with the following information: initial fixed asset investment = 5 0 0 , 0 0 0 ; straight -

Consider a four-year project with the following information: initial fixed asset investment =500,000; straight-line depreciation over the four-year life; zero salvage value; price =31; variable costs =21; fixed costs =190,000; quantity sold =110,000 units; tax rate =34 per cent. (Round your answers to 4 decimal places.)
Required:
What is the degree of operating leverage at the given level of output?

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