Question: Calculating Operating Leverage [ LO 4 ] At an output level of 7 3 , 0 0 0 units, you calculate that the degree of

Calculating Operating Leverage [LO4]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 fl ow be? Will the new level of operating leverage be higher or lower? Explain. 12. Leverage [LO4]In the previous problem, suppose fi xed costs are $150,000. What is the operating cash fl ow at 67,000 units? The degree of operating leverage?

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