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A Proposed Project Has Fixed Costs of $42,106 Per Year

Question 33

Multiple Choice

A proposed project has fixed costs of $42,106 per year. The operating cash flow at 12,000 units is $56,900. Ignore taxes. What will be the new degree of operating leverage if the number of units sold rises to 12,600?


A) 1.46
B) 1.68
C) 1.57
D) 1.74
E) 1.82

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