In the previous problem, suppose fixed costs are $183,000. What is the operating cash flow at 38,000
Question:
In the previous problem, suppose fixed costs are $183,000. What is the operating cash flow at 38,000 units? The degree of operating leverage?
Previous problem
At an output level of 40,000 units, you calculate that the degree of operating leverage is 3.19. If output rises to 44,000 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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The operating cash flow OCF at 38000 units can be calculated as follows OCF Price Variable costs Out...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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