Degree of operating leverage at given level of output

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Reference no: EM131352275

Consider a four-year project with the following information: initial fixed asset investment = $420,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $25; variable costs = $16; fixed costs = $180,000; quantity sold = 75,000 units; tax rate = 34 percent. What is the degree of operating leverage at the given level of output? (Round your answer to 4 decimal places. (e.g., 32.1616))

1) Degree of operating leverage

2) What is the degree of operating leverage at the accounting break-even level of output?

Reference no: EM131352275

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