Question: Consider the previous question with the following new information: Fixed costs are assumed to be $ 5 5 0 , 0 0 0 per year.
Consider the previous question with the following new information: Fixed costs are assumed to be $ per year. The company estimates the variable cost per unit v to be $ and expects to sell each unit for $ There are no taxes and the required rate of return is per year. Suppose that sales are currently estimated to be units per year.
What is the degree of operating leverage? Blank Fill in the blank, read surrounding text.
Round to the CLOSEST decimal place, ie
Using your answer from above, ESTIMATE what the new annual operating cash flow OCF will be if sales increase by units: $ Blank Fill in the blank, read surrounding text.
Round your answer to the nearest $ and do NOT use commas in your response, ie
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