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Calculate the Cash Flow DOL for this firm

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Reference no: EM132990319

Question 1 - The law firm of Daniel, Cheatem, and Howe has monthly fixed costs of $143,000, EBIT of $215,000, and depreciation charges on its office furniture and computers of $5,000. Calculate the Cash Flow DOL for this firm.

Question 2 - The Sheridan Co. is going to take on a project that is expected to increase its EBIT by $90,000, its fixed cost cash expenditures by $88,000, and its depreciation and amortization by $70,000 next year. If the project yields an additional 10 percent in revenue, what percentage increase in the project's EBIT will result from the additional revenue?

Reference no: EM132990319

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