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What is the degree of operating leverage of project

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Reference no: EM131596930

Operating Leverage - A project has fixed costs of $1000 per year, deprecation of $500 a year, annual revenue of $6000 and variable costs equal to two thirds of revenues.

A) If sales increase by 10% what will be the increase in pretax profits?

B) What is the degree of operating leverage of this project?

Reference no: EM131596930

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