In the previous problem, what will be the new degree of operating leverage in each case? Data

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In the previous problem, what will be the new degree of operating leverage in each case?


Data from Problem 14

At an output level of 10,000 units, you have calculated that the degree of operating leverage is 3.5. The operating cash flow is $9,000 in this case. Ignoring the effect of taxes, what are fixed costs? What will the operating cash flow be if output rises to 11,000 units? If output falls to 9,000 units?

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Related Book For  answer-question

Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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