At an output level of 25,000 units, the degree of operating leverage is 2.75. The operating cash flow is $65,000 in this case. What will the operating cash flow be if output falls to 23,750 units?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 4EB: Assume a company is going to make an investment in a machine of $825,000 and the following are the...
icon
Related questions
Question

Kindly help me with general accounting question

At an output level of 25,000 units, the degree of operating leverage
is 2.75. The operating cash flow is $65,000 in this case. What will the
operating cash flow be if output falls to 23,750 units?
Transcribed Image Text:At an output level of 25,000 units, the degree of operating leverage is 2.75. The operating cash flow is $65,000 in this case. What will the operating cash flow be if output falls to 23,750 units?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College