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Q9) A proposed project has fixed costs of $43,000 per year. The operating cash flow at...

Q9) A proposed project has fixed costs of $43,000 per year. The operating cash flow at 13,000 units is $86,000.

A) Ignoring the effect of taxes, what is the degree of operating leverage?

B) If units sold rise from 13,000 to 13,200, what will be the increase in operating cash flow?

C) What is the new degree of operating leverage?
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