ABC company currently sells 1500 units of printers per year and has a Operating Cash Flow (OCF) of $41000. The levelof Degree of Operating Leverage (DOL) of ABC company at its current level of sales of its printers is 1.33. ABC thinks itsunit sales of printers for next year will be 1600. If this change occurs then, ignoring the effect of taxes, ABC company'sOperating Cash Flow (OCF) will change to $(Do NOT include the $ sign or any other text. Enter your answer rounded to 2 decimal places, e.g. 10002.34)

Formula Degree of operating leverage = Contribution margin / Operating…

Answered: ABC company currently sells 1500 units…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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