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What is the new degree of operating leverage

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Question - A proposed project has fixed costs of $76,000 per year. The operating cash flow at 7,600 units is $88,200.

Ignoring the effect of taxes, what is the degree of operating leverage?

If units sold rise from 7,600 to 8,100, what will be the increase in operating cash flow?

What is the new degree of operating leverage?

Reference no: EM132827754

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