Question: Problem 1 1 - 1 3 Operating Cash Flow and Leverage [ LO 4 ] A proposed project has fixed costs of $ 1 0
Problem Operating Cash Flow and Leverage LO
A proposed project has fixed costs of $ per year. The operating cash flow at
units is $ Ignore the effect of taxes.
a What is the degree of operating leverage? Do not round intermediate calculations
and round your answer to decimal places, eg
b If units sold rise from to what will be the new operating cash flow? Do
not round intermediate calculations and round your answer to decimal places,
eg
c If units sold rise from to what is the new degree of operating leverage?
Do not round intermediate calculations and round your answer to decimal
places, eg
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