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At an output level of 20,000 units, a company has calculated that the degree of operating leverage (DOL) is 3.0, and the operating cash flow (OCF) is $90,000. Ignoring taxes: What are the Contribution Margin (CM)?

At an output level of 20,000 units, a company has calculated that the degree of operating leverage (DOL) is 3.0, and the operating cash flow (OCF) is $90,000. Ignoring taxes: What are the Contribution Margin (CM)?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...
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I am trying to find the accurate solution to this general accounting problem with appropriate explanations.
At an output level of 20,000 units, a company has calculated that the degree of operating leverage (DOL) is 3.0, and the operating cash flow (OCF) is $90,000. Ignoring taxes: What are the Contribution Margin (CM)?
Transcribed Image Text:At an output level of 20,000 units, a company has calculated that the degree of operating leverage (DOL) is 3.0, and the operating cash flow (OCF) is $90,000. Ignoring taxes: What are the Contribution Margin (CM)?
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