What is new degree of operating leverage

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Reference no: EM131352295

A proposed project has fixed costs of $36,000 per year. The operating cash flow at 11,000 units is $69,000.

Required:

(a) Ignoring the effect of taxes, what is the degree of operating leverage? (Do not round your intermediate calculations.)

(b) If units sold rise from 11,000 to 11,500, what will be the increase in operating cash flow? (Do not round your intermediate calculations.)

Reference no: EM131352295

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