Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. problem 11-13 operating cash flow and leverage (l0

Problem 11-13 Operating Cash Flow and Leverage (L04] A proposed project has fixed costs of...

50.1K

Verified Solution

Question

Finance

image
Problem 11-13 Operating Cash Flow and Leverage (L04] A proposed project has fixed costs of $88,000 per year. The operating cash flow at 7,800 units is $88,600. Ignore the effect of taxes. a. What is the degree of operating leverage? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) b. If units sold rise from 7,800 to 8,300, what will be the new operating cash flow? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the new degree of operating leverage? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) a. DOL b. New operating cash flow c. New DOL

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students