Transcribed Image Text
A proposed project has fixed costs of $43,000 per year. Theoperating cash flow at 8,000 units is $78,000.Required:(a) Ignoring the effect of taxes, what is the degree ofoperating leverage?(b) If units sold rise from 8,000 to 8,500, what will be theincrease in operating cash flow?(c) What is the new degree of operating leverage?
Other questions asked by students
Q
To save for her newborn son's college education, Lea Wilson will invest $23,000 at the beginning...
Finance
Biology
Geometry
Accounting
Accounting
Accounting
Finance