At an output level of 25,000 units, the degree of operating leverage is 2.50. The operating cash flow is $60,000. What are the 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 correct answer to this general accounting problem with proper accounting rules.

At an output level of 25,000 units, the degree of
operating leverage is 2.50. The operating cash
flow is $60,000. What are the fixed costs?
Transcribed Image Text:At an output level of 25,000 units, the degree of operating leverage is 2.50. The operating cash flow is $60,000. What are the fixed costs?
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