answer plz Everest Technologies is managing a project with a degree of operating leverage of 1.15. Ifthe number of units sold increases by 7.8%, what will be the percentage change in operatingcash flows?Options:A) 7.80% decreaseB) 8.97% increaseC) 6.78% increaseD) 9.20% increase

Step-by-Step Explanation to Solve the Problem The problem involves calculating the percentage change…

Answered: Everest Technologies is managing a…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5PB: Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated...

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A project has fixed costs of $400 per year, depreciation charges of $400 a year, annual revenue of $3,600, and variable costs equal to two-thirds of revenues. a. If sales increase by 17%, what will be the percentage increase in pretax profits? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the degree of operating leverage of this project? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Everest Technologies is managing a project with a degree of operating leverage of 1.15. If the number of units sold increases by 7.8%, what will be the percentage change in operating cash flows? Options: A) 7.80% decrease B) 8.97% increase C) 6.78% increase D) 9.20% increase