Degree of operating leverage-steele insulators

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Steele Insulators is analyzing a new type of insulation for interior walls. The initial fixed asset requirement is $1.62 million, which would be depreciated straight-line to zero over the 7-year life of the project. Projected fixed costs are $287,400 and the anticipated operating cash flow is $139,300. What is the degree of operating leverage for this project?

Reference no: EM132711668

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