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Chapter 38 from Business Law and the Legal Environment was adapted by The Saylor Foundation under a Creative Commons…
November 26, 2019
Essay of 1500 words Discuss how you would build quality into all phases of the project process and into the product of the project.
November 26, 2019

Consider the previous question with the following new information: Fixed costs are assumed to be $500,000 per year. The company estimates the variable cost per unit (v) to be $75 and expects to sell each unit for $425. There are no taxes and the required rate of return is 22% per year. Suppose that sales are currently estimated to be 5000 units per month.

What is the degree of operating leverage?  (Round to 1 decimal place, ie 2.3)

Using your answer from above, estimate what the new monthly operating cash flow (OCF) will be if sales increase by 100 units: $  

(Round your answer to the nearest whole dollar, and do NOT use commas in your response, ie. 456789)

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