At an output level of 15,000 units, you have calculated that the degree of operating leverage is
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At an output level of 15,000 units, you have calculated that the degree of operating leverage is 2.61. The operating cash flow is $57,000 in this case. Ignoring the effect of taxes, what are fixed costs? What will the operating cash flow be if output rises to 16,000 units? If output falls to 14,000 units?
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Input area Initial output 15000 Initial DOL 261 ...View the full answer
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Related Book For 
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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