Ms. Brusey is applying for a car loan after her vehicle broke and now she has no way to get to work and will not be able to pay any bills if she’s not getting paid. The new vehicle she is looking at costs $16,789. However, she only has a down payment of $500. Also, you run her credit score and she has a 600. Would you lend her the money for her car? Why or why not?

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?