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The Fixed Costs of a Project Are $16,000

Question 400

Multiple Choice

The fixed costs of a project are $16,000. The depreciation expense is $7,800 and the operating cash flow is $12,700. What is the degree of operating leverage for this project?


A) 1.26
B) 1.43
C) 1.79
D) 2.26
E) 2.79

Correct Answer:

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