A PROJECT REQUIRES FIXED COSTS OF $450,000 AND IS EXPECTED TO GENERATE AN OPERATING CASH FLOW OF $300,000. WHAT IS THE DEGREE OF OPERATING LEVERAGE FOR THE PROJECT?

Information Technology Project Management
9th Edition
ISBN:9781337101356
Author:Kathy Schwalbe
Publisher:Kathy Schwalbe
Chapter7: Project Cost Management
Section: Chapter Questions
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A PROJECT REQUIRES FIXED COSTS OF
$450,000 AND IS EXPECTED TO
GENERATE AN OPERATING CASH FLOW
OF $300,000. WHAT IS THE DEGREE OF
OPERATING LEVERAGE FOR THE
PROJECT?
Transcribed Image Text:A PROJECT REQUIRES FIXED COSTS OF $450,000 AND IS EXPECTED TO GENERATE AN OPERATING CASH FLOW OF $300,000. WHAT IS THE DEGREE OF OPERATING LEVERAGE FOR THE PROJECT?
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