Question: please answer part a thank you Consider a four-year project with the following information: Initial fixed asset investment = $575,000; straight-line depreciation to zero over
Consider a four-year project with the following information: Initial fixed asset investment = $575,000; straight-line depreciation to zero over the four-year life; zero salvage value, price = $29; variable costs = $19; fixed costs = $235,000; quantity sold = 76,000 units; tax rate = 21 percent. a. What is the degree of operating leverage at the given level of output? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the degree of operating leverage at the accounting break-even level of output? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is not complete. a. Degree of operating leverage Degree of operating leverage b. 2.63
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