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The fiXed Costs of a Project Are $6,000

Question 271

Multiple Choice

The fixed costs of a project are $6,000. The depreciation expense is $4,500 and the operating cash flow is $18,000. What is the degree of operating leverage for this project?


A) 1.33
B) 1.44
C) 1.50
D) 2.25
E) 3.00

Correct Answer:

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