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Dima020 [189]
3 years ago
7

A proposed project has fixed costs of $47,000 per year. The operating cash flow at 11,000 units is $69,000. a. Ignoring the effe

ct of taxes, what is the degree of operating leverage
Business
1 answer:
Mademuasel [1]3 years ago
4 0

Answer: 1.68

Explanation:

From the question, we are informed that a proposed project has fixed costs of $47,000 per year and that the operating cash flow at 11,000 units is $69,000.

Ignoring the effect of taxes, the degree of operating leverage will be:

= 1 + ($47,000/$69,000)

= 1 + 0.68

= 1.68

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Answer:

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Answer:

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Giving the following information:

True: Finding the present value of cash flows in future years tells you how much you would need to invest today so that it would grow to equal the given future amount.

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