At an output level of 16,700 units, you have calculated that the degree of operating leverage is 3.19. The operating cash flow is $81,000 in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for 17,500 units and 16,000 units? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. DOL at 17,500 units DOL at 16,000 units
At an output level of 16,700 units, you have calculated that the degree of operating leverage is 3.19. The operating cash flow is $81,000 in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for 17,500 units and 16,000 units? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. DOL at 17,500 units DOL at 16,000 units
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
Section: Chapter Questions
Problem 1EP
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Transcribed Image Text:At an output level of 16,700 units, you have calculated that the degree of operating leverage is 3.19. The operating cash flow is $81,000
in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for 17,500 units and 16,000 units?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
DOL at 17,500 units
DOL at 16,000 units
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