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Suppose that the expected variable costs of Otobai’s project are ¥33 billion a year and that fixed costs are zero. How does this change the degree of operating leverage (DOL)? Now recompute the operating leverage assuming that the entire ¥33 billion of costs are fixed., DOL Formula Project Costs Calculation,Variable cost 1+(Fixed cost + depreciation)/ operating profit F C, ,Fixed cost 1+(Fixed cost + depreciation)/ operating profit F C,

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