Need help please A proposed project has fixed costs of $94,000 per year. The operating cash flow at 6,400 unitsis $88,800.a. Ignoring the effect of taxes, what is the degree of operating leverage? (Do not roundintermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.)b. If units sold rise from 6,400 to 6,900, what will be the new operating cash flow? (Do not roundintermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)c. What is the new degree of operating leverage? (Do not round intermediate calculations. Roundyour answer to 4 decimal places, e.g., 32.1616.)

Approach to solving the question: Part a: Degree of Operating Leverage (DOL) Step 1: Understanding…

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Principles of Accounting Volume 2

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ISBN:9781947172609

Author:OpenStax

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Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 4EA: Assume a company is going to make an investment of $450,000 in a machine and the following are the...

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A proposed project has fixed costs of $108,000 per year. The operating cash flow at 6,800 units is $96,600. Ignore the effect of taxes. a. What is the degree of operating leverage? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) b. If units sold rise from 6,800 to 7,300, what will be the new operating cash flow? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. If units sold rise from 6,800 to 7,300, what is the new degree of operating leverage? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
A proposed project has fixed costs of $41,000 per year. The operating cash flow at 10,000 units is $67,000. a. Ignoring the effect of taxes, what is the degree of operating leverage? b. If units sold rise from 10,000 to 10,100, what will be the increase in operating cash flow? c.What is the new degree of operating leverage?
A project has the following estimated data: Price = $46 per unit; variable costs = $31 per unit; fixed costs $19,000; required return = 15 percent; Initial investment $18,000; life = six years. a. Ignoring the effect of taxes, what is the accounting break-even quantity? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the cash break-even quantity? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the financial break-even quantity? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the degree of operating leverage at the financial break-even level of output? (Do not round Intermedlate calculations and round your answer to 3 decimal places, e.g., 32.161.) Accounting break-even quantity a. b. Cash break-even quantity с. Financial break-even quantity d. DOL eg EA9F9D41-D35...jpeg 8A1B4474-4751..jpeg…
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