At an output level of 73,000 units, you calculate that the degree of operating leverage is 2.90.

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At an output level of 73,000 units, you calculate that the degree of operating leverage is 2.90. If output rises to 78,000 units, what will the percentage change in operating cash flow be? Will the new level of operating leverage be higher or lower? Explain.

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Fundamentals of corporate finance

ISBN: 978-0078034633

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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