Management has compiled the following information to

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Management has compiled the following information to determine whether or not this new sealant should be manufactured. Projected fixed costs are $894,080 and the anticipated annual operating cash flow is $254,000. The sealant project has an initial fixed asset requirement of $1,750,000, which would be depreciated straight-line to zero over the 10-year life of the project. What is the degree of operating leverage for this project?

Reference no: EM13617920

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