Question: consider a four year project with the following information: initial fixed asset investment = $540,000; straightline depreciation to zero over the four year life; zero
consider a four year project with the following information: initial fixed asset investment = $540,000; straightline depreciation to zero over the four year life; zero salvage value; price =$34; variable costs = $23; fixed costs = $215,000; quantity sold = 70,000 units; tax rate = 21 percent. What is the degree of operating leverage at the fiven level of output? What is the degree of operating leverage at the accounting break-even level of output?
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