Problem

Suppose that the expected variable costs of Otobai’s project are ¥33 billion a year and th...

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? Now recompute the operating leverage assuming that the entire ¥33 billion of costs are fixed.

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Solutions For Problems in Chapter 10