Question: Problem 11-12 Calculating Operating Leverage (LO4] At an output level of 60,000 units, you calculate that the degree of operating leverage is 3.20. Suppose fixed

Problem 11-12 Calculating Operating Leverage (LO4] At an output level of

Problem 11-12 Calculating Operating Leverage (LO4] At an output level of 60,000 units, you calculate that the degree of operating leverage is 3.20. Suppose fixed costs are $200,000. a. What is the operating cash flow at 54,000 units? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the new degree of operating leverage? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a. Operating cash flow b. New DOL

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Problem 11-12 Calculating Operating Leverage [LO4] At an output level of 59,000 units, you calculate that the degree of operating leverage is 3.30. Suppose fixed costs are $160,000. What is the...

11-12 Calculating Operating Leverage [LO4] At an output level of 59,000 units, you calculate that the degree of operating leverage is 3.30. Suppose fixed costs are $160,000. a. What is the operating...

Calculating Operating Leverage [LO4] At an output level of 45,000 units, you calculate that the degree of operating leverage is 2.79. If output rises to 48,000 units, what will the percentage change...

I only need question 12 answered but wanted to show question 11 since the previous question is mentioned in question 12 11. Calculating Operating Leverage [LO4] At an output level of 73,000 units,...

Calculating Operating Leverage [ LO 4 ] At an output level of 7 3 , 0 0 0 units, you calculate that the degree of operating leverage is 2 . 9 0 . If output rises to 7 8 , 0 0 0 units, what will the...

solve leverage alculating Break Even (LO3] In each of the following cases, find the unknown ariable: Accounting Break-Even 143,286 104,300 24,640 Unit Variable Cost $30 27 Fixed Costs $ 820,000...

CH11 1. Forecasting Risk [LO1] What is forecasting risk? In general, would the degree of forecasting risk be greater for a new product or a cost-cutting proposal? Why? 4. Operating Leverage [LO4] At...

The University of Southern Mississippi College of Science & Technology IET 670 Section: G001 Supply Chain Design & Management Midterm Exam Full Points: 100 Student ID: Name: Closed book closed notes...

11 . Calculating Operating Leverage [ LO 4 ] At an output level of 45, 000 units , you calculate that the degree of operating* leverage is 2. 79 . If output rises to 48, 000 units , what will the...

The dataset Toyota Corolla.csv contains data on used cars on sale during the late summer of 2004 in the Netherlands. It has 1436 records containing details on 38 attributes, including Price, Age,...

An automobile purchased for $22,000 is worth $2500 after 5 years. Assuming that the car's value depreciated steadily from year to year, what was it worth at the end of the third year?

Atmel Incorporated manufactures and sells two products. Consider the following data regarding these products. Total budgeted machine hours are 7 7 , 8 0 0 . The budgeted overhead costs are shown...

Which of these is not a typical motivation for a strategic alliance? Build critical mass through co option Differentiate existing products and services Enter new markets through co specialized...

Explain some issues associated with administering disciplinary action in other countries.

Describe the problems in the administration of disciplinary action.

Explain discipline and disciplinary action.