Question: Problem 11-13 Operating Cash Flow and Leverage [LO4] A proposed project has fixed costs of $98,000 per year. The operating cash flow at 8,400 units
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Problem 11-13 Operating Cash Flow and Leverage [LO4] A proposed project has fixed costs of $98,000 per year. The operating cash flow at 8,400 units is $94,800. Ignoring the effect of taxes, what is the degree of operating leverage? (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.) Degree of operating leverage 2.0337 If units sold rise from 8,400 to 8,900, what will be the new operating cash flow? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Operating cash flow What is the new degree of operating leverage? (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.) New DOL
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