At an output level of 15,000 units, the degree of operating leverage is 2.50. The operating cash flow is $72,000 in this case. What will the operating cash flow be if output rises to 16,800 units?
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- General AccountingWhat is the operating cash flow at this level of output of this financial accounting question?A firm expects to sell 11,500 units. The expected variable cost per unit is $314 and the expected fixed costs are $647,000. The depreciation expense is $187,000. The sales price is estimated at $850 per unit. The tax rate is 21%. What is the operating cash flow based on this analysis?
- At an output level of 18,000 units, you have calculated that the degree of operating leverage is 2.10. The operating cash flow is $46,500 in this case. Ignore the effect of taxes. a. What are fixed costs? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What will the operating cash flow be if output rises to 19,000 units? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What will the operating cash flow be if output falls to 17,000 units? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)A proposed project has fixed costs of $48,000 per year. The operating cash flow at 11,000 units is $85,000 units. What is the new degree of operating leverage?Unit sales are expected to reach 25,000 per year, the price per unit is expected to be $70, variable costs are $40 per unit and fixed costs are $100,000 per year. What is the degree of operating leverage at the expected levels? Using the degree of operating leverage, what is the expected percentage change in EBIT if unit sales turn out to be 6,000 lower than expected?