A project has fixed costs of $1,600 per year, depreciation charges of $500 a year,...
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A project has fixed costs of $1,600 per year, depreciation charges of $500 a year, annual revenue of $9,900, and variable costs equal to two-thirds of revenues. a. If sales increase by 18%, what will be the percentage increase in pretax profits? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) * Answer is not complete. Pretax profit increase % b. What is the degree of operating leverage of this project? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is not complete. Degree of operating leverage
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