Question: Consider a four-year project with the following information: Initial fixed asset investment=$420,000 Straight line depreciation to zero over the four-year life Zero salvage value Price

Consider a four-year project with the following information:

Initial fixed asset investment=$420,000

Straight line depreciation to zero over the four-year life

Zero salvage value

Price per unit=$25

Variable costs=$16

Fixed costs=$180,000

Quantity sold=75,000 units

T=34%

What is the degree of operating leverage? (Round to two decimal places)

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