Question: Problem #1.3: [2+2-4 marks] A project has fixed cost of $1,000 per year, depreciation charge is $500 per year, sales is $8,000, and variable cost

Problem #1.3: [2+2-4 marks] A project has fixed cost of $1,000 per year, depreciation charge is $500 per year, sales is $8,000, and variable cost is 75 % of sales. Calculate the pre-tax annual income and the Degree of operating leverage of this project? Pretax income $ If sales increases by 5%, what will be the increase in pretax profit

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