Can you please answer this general accounting question? At an output level of 18,500 units, you have calculatedthat the degree of operating leverage is 3.00. Theoperating cash flow is $48,000 in this case.a. What are fixed costs?b. What will the operating cash flow be if output rises to20,500 units?c. What will the operating cash flow be if output falls to18,500 units?

Step 1: Define Operating Cash FlowBusinesses determine the operating cash flow to analyze the change…

Answered: At an output level of 18,500 units, you…

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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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.)
What will the percentage change in operating cash flow?
At an output level of 40,000 units, you calculate that the degree of operating leverage is 2.70. If output rises to 46,800 units, what will the percentage change in operating cash flow be? (Do not round your intermediate calculations.) Multiple Choice 45.90% 39.23% 48.20%
Accounting provide a. b calculation
am. 188.
At an output level of 17,500 units, you have calculated that the degree of operating leverage is 3.40. The operating cash flow is $59,000 in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for output levels of 18,500 units and 16,500 units? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. DOL at 18,500 units 3.40x DOL at 16,500 units 3.40X
A firm uses simple linear regression to forecast the costs for its main product line. If fixed costs are equal to $235,000 and variable costs are $10 per unit, how many units does it need to sell at $15 per unit to make a $300,000 profit?
1) What level of output would generate a profit of $15,000 if a product sells for $24.99, has unit variable costs of $9.99, and total fixed costs of $55,005?
A proposed project has fixed costs of $35,000 per year. The operating cash flow at 14,000 units is $60,000. a. Ignoring the effect of taxes, what is the degree of operating leverage? b. If units sold rise from 14,000 to 14,400, what will be the increase in operating cash flow? c. What is the new degree of operating leverage?
If sales are $325,000, variable costs are 75% of sales, and operating income is $45,600, what is the operating leverage? a. 1.3 b. 1.8 c. 0.0 d. 5.3

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