The Fixed Costs of a Project Are $8,000

question 396

Multiple Choice

The fixed costs of a project are $8,000. The depreciation expense is $3,500 and the operating cash flow is $20,000. What is the degree of operating leverage for this project?

• A) .40
• B) .71
• C) .87
• D) 1.40
• E) 2.50

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