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Consider a four-year project with the following information: initial fixed asset investment = $490,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $34; variable costs = $24; fixed costs = $190,000; quantity sold = 79,000 units; tax rate = 34 percent.

What is the degree of operating leverage at the given level of output?

What is the degree of operating leverage at the accounting break-even level of output?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92320579

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