A Proposed Project Has Fixed Costs of $36,000 Per Year

question 70

Multiple Choice

A proposed project has fixed costs of $36,000 per year.The operating cash flow at 18,000 units is $58,000.What will be the new degree of operating leverage if the number of units sold rises to 18,500?

• A)1.46
• B)1.59
• C)1.67
• D)2.08
• E)2.14

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Definitions:

Punch-down Tool

A punch-down tool is a small hand tool used by telecommunication and network technicians to insert wire into insulation-displacement connectors on punch down blocks, patch panels, keystone modules, and surface mount boxes.

Patch Panel

A mounted hardware assembly that contains ports used to interconnect and manage incoming and outgoing LAN cables in networking setups.

SSL

Secure Sockets Layer, a standard security technology for establishing an encrypted link between a server and a client—typically a web server (website) and a browser or a mail server and a mail client.

Domain Names

Unique names that identify internet resources such as websites, essentially serving as the address for the resource on the web.