What is degree of operating leverage

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A proposed project has fixed costs of $39,000 per year. The operating cash flow at 6,000 units is $68,000.

(a) Ignoring the effect of taxes, what is the degree of operating leverage? (Do not round your intermediate calculations.)

(b) If units sold rise from 6,000 to 6,300, what will be the increase in operating cash flow? (Do not round your intermediate calculations.)

Reference no: EM131341763

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