You are in charge of a project that has a degree of operating leverage of 2.64.
ID: 2696043 • Letter: Y
Question
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 6 percent?a. 15.84 percent decrease b. 2.27 percent decrease c. no chage d. 2.27 percent increase e. 15.84 percent increase
please show work because I do not understand how to do this.
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 6 percent?
a. 15.84 percent decrease b. 2.27 percent decrease c. no chage d. 2.27 percent increase e. 15.84 percent increase
please show work because I do not understand how to do this.
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 6 percent?
a. 15.84 percent decrease b. 2.27 percent decrease c. no chage d. 2.27 percent increase e. 15.84 percent increase
please show work because I do not understand how to do this.
Explanation / Answer
e. 15.84 percent increase
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