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How does the change the degree of operating leverage

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Reference no: EM131109891

Problem: Suppose that the expected variable costs of Otobai's project are ¥33 billion a year and that fixed costs are zero.

a. How does this change the degree of operating leverage (DOL)?
b. Now recompute the operating leverage assuming that the entire ¥33 billion of costs are fixed.

Reference no: EM131109891

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