The fiXed Costs of a Project Are $6,000

question 271

Multiple Choice

The fixed costs of a project are $6,000. The depreciation expense is $4,500 and the operating cash flow is $18,000. What is the degree of operating leverage for this project?

• A) 1.33
• B) 1.44
• C) 1.50
• D) 2.25
• E) 3.00

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Definitions:

Tuskegee Institute

An historically black university in Alabama, founded by Booker T. Washington, to provide higher education and vocational training.

Niagara Movement

An important civil rights group founded in 1905, advocating for the rights of African Americans and opposing policies and practices of racial segregation and disenfranchisement.

Guaranteed Suffrage

The right to vote that is protected and ensured by law or constitution, typically referring to the universal right to vote regardless of race, gender, or economic status.

Race-based Distinctions

The practice or policy of differentiating individuals based on racial characteristics, often leading to discrimination or inequality.