The ﬁxed costs of a project are $16,000. The depreciation expense is $7,800 and the operating cash ﬂow is $12,700. What is the degree of operating leverage for this project?
A) 1.26
B) 1.43
C) 1.79
D) 2.26
E) 2.79

Question

Quizplus · Accepted Answer

The Answer of The ﬁxed costs of a project are $16,000. The depreciation expense is $7,800 and the operating cash ﬂow is $12,700. What is the degree of operating leverage for this project?
A) 1.26
B) 1.43
C) 1.79
D) 2.26
E) 2.79

The ﬁXed Costs of a Project Are $16,000