You Are in Charge of a Project That Has a Degree

question 59

Multiple Choice

You are in charge of a project that has a degree of operating leverage of 2.64.What will happen to the operating cash flows if the number of units you sell increase by 4 percent?

• A)15.84 percent decrease
• B)2.27 percent decrease
• C)no change
• D)2.27 percent increase
• E)10.56 percent increase

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