Question: Consider a four-year project with the following information initial fixed asset investment = $410,000, straight line depreciation to zero over the four-year life; zero salvage
Consider a four-year project with the following information initial fixed asset investment = $410,000, straight line depreciation to zero over the four-year life; zero salvage value, price = $22, variable costs = $14, fixed costs = $110,000, quantity sold = 71,000 units, tax rate = 32 percent What is the degree of operating leverage at the given level of output? (Do not round Intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.) Degree of operating leverage What is the degree of operating leverage at the accounting break-even level of output? (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.) Degree of operating leverage
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
