Multiple Choice
You are in charge of a project that has a degree of operating leverage of 2.64. What will happen to the operating cash flows if the number of units you sell increase by 6 percent?
A) 15.84 percent decrease
B) 2.27 percent decrease
C) no change
D) 2.27 percent increase
E) 15.84 percent increase
Correct Answer:
Verified
Correct Answer:
Verified
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