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

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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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Posted Date: Jul 06, 2018 09:28 AM

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

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Fundamentals of corporate finance

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