What is the degree of operating leverage

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A project has the following estimated data: price = $800 per unit; variable costs = $650 per unit; fixed costs = $900,000; required return = 8%; initial investment = $5,000,000; salvage value = $50,000; life = 14 years.

-What is the financial break-even quantity?

-What is the operating cash flow at the financial break-even quantity?

-What is the degree of operating leverage at the financial break-even quantity?

Reference no: EM132707648

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