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What is the degree of operating leverage

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Problem - Consider a four-year project with the following information: initial fixed asset investment = $620,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $50; variable costs = $38; fixed costs = $295,000; quantity sold = 118,000 units; O tax rate = 22 percent.

Required -

a. What is the degree of operating leverage at the given level of output?

b. What is the degree of operating leverage at the accounting break-even level of eBook output?

Reference no: EM132745624

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