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Consider a four-year project with the following information: initial fixed asset investment = $540,000; straight-line depreciation...

Consider a four-year project with the following information: initial fixed asset investment = $540,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $34; variable costs = $23; fixed costs = $215,000; quantity sold = 70,000 units; tax rate = 21 percent.

  

a.

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

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