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

Question

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The Answer of 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

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