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A proposed project has fixed costs of$83,000 per year. The operating cash flow at 9,100 units is $102,9000. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rise from 9,100 to 9,500, what will be the increase in operating cash flow? What is the new degree of operating leverage?A proposed project has fixed costs of$83,000 per year. The operating cash flow at 9,100 units is $102,9000. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rise from 9,100 to 9,500, what will be the increase in operating cash flow? What is the new degree of operating leverage? Please show all steps.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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