A project has the following estimated data: price = $150 per unit; variable costs = $88 per unit; fixed costs = $250,000; required return = 11%; initial investment = $200,000; $50,000 salvage value; life = ten years. What is the degree of operating leverage at the financial break-even level of output?
A) 5.07
B) 6.07
C) 7.07
D) 8.07
E) 9.07
Correct Answer:
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