At an output level of 23,800 units, you have calculated that the degree of operating leverage is 3.45. The operating cash flow is $78,200 in this case. Ignoring the effect of taxes, what are fixed costs?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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I am searching for the accurate solution to this financial accounting problem with the right approach.

At an output level of 23,800 units,
you have calculated that the degree
of operating leverage is 3.45. The
operating cash flow is $78,200 in this
case. Ignoring the effect of taxes,
what are fixed costs?
Transcribed Image Text:At an output level of 23,800 units, you have calculated that the degree of operating leverage is 3.45. The operating cash flow is $78,200 in this case. Ignoring the effect of taxes, what are fixed costs?
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