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A Proposed Project Has Fixed Costs of $36,000 Per Year

Question 70

Multiple Choice

A proposed project has fixed costs of $36,000 per year.The operating cash flow at 18,000 units is $58,000.What will be the new degree of operating leverage if the number of units sold rises to 18,500?


A) 1.46
B) 1.59
C) 1.67
D) 2.08
E) 2.14

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