What is the degree of operating leverage

Reference no: EM13280491

A proposed project has fixed costs of $90,000 per year. The operating cash flow at 4,700 units is $96,000. Ignoring the effect of taxes,

A)what is the degree of operating leverage?

B)If units sold rise from 4,700 to 5,200, what will be the new operating cash flow?

C)What is the new degree of operating leverage?

Reference no: EM13280491

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