Consider a four-year project with the following information: initial fixed asset investment = $490,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $34; variable costs = $24; fixed costs = $190,000; quantity sold = 79,000 units; tax rate = 34 percent.
1. What is the degree of operating leverage at the given level of output? (Round your answer to 4 decimal places. (e.g., 32.1616))
Degree of operating leverage
2. What is the degree of operating leverage at the accounting break-even level of output? (