PLEASE PUT THE ANSWER TO PART b AS A PERCENTAGE AND PARTS A and C AS DECIMALS
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PLEASE PUT THE ANSWER TO PART b AS A PERCENTAGE AND PARTS A and C AS DECIMALS
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A proposed project has fixed costs of $36,000 per year. The operating cash flow at 15,000 units is $61,000. a. Ignoring the effect of taxes, what is the degree of operating leverage? DOL 1.5902 b. If units sold rise from 15,000 to 15,300, what will be the increase in operating cash flow? OCF at 15,300 units 3.18% 5.39% 3.78% 3.47% 2.58% c. What is the new degree of operating leverage? New DOL A proposed project has fixed costs of $36,000 per year. The operating cash flow at 15,000 units is $61,000. a. Ignoring the effect of taxes, what is the degree of operating leverage? DOL 1.5902 b. If units sold rise from 15,000 to 15,300, what will be the increase in operating cash flow? OCF at 15,300 units 3.18% 5.39% 3.78% 3.47% 2.58% c. What is the new degree of operating leverage? New DOL
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