Sherwin Corporation has three business segments: paint, wallpapers, and tools. Financial information about each segment follows. Paint Segment Wallpaper Segment Tools Segment Paint Segment Wallpaper Segment Tools Segment Segment operating income $650,000 $475,000 $900,000 Invested capital 6,500,000 3,500,000 7,500,000 b) Assuming a reduction in assumed cost of capital to 5%, calculate the residual income for Paint.

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?