At an output level of 30,000 units, you calculate that the degree of operating leverage is 3.
Question:
At an output level of 30,000 units, you calculate that the degree of operating leverage is 3. If output rises to 36,000 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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To calculate the percentage change in operating cash flow we can use the following formula Percentag...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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