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Consider a four year project with the following information initial fixed asset investment $450000 straight line depreciation to zero over the four year life zero salvage value price

Consider a four-year project with the following information: initial fixed asset investment = $450,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $26; variable costs = $16; fixed costs = $140,000; quantity sold = 74,000 units; tax rate = 34 percent.

  

What is the degree of operating leverage at the given level of output? (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.)

  

  Degree of operating leverage   

   

What is the degree of operating leverage at the accounting break-even level of output? (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.)

  

  Degree of operating leverage  

Apr 11 2020 Read more Less More

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