At an output level of 32,000 units, the degree of operating leverage is 2.10. If output increases to 51,200 units, what will the percentage change in operating cash flow be? a. 110% b. 122% c. 126% d. 125%

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...
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Financial Accounting

At an output level of 32,000 units, the degree of
operating leverage is 2.10. If output increases to
51,200 units, what will the percentage change in
operating cash flow be?
a. 110%
b. 122%
c. 126%
d. 125%
Transcribed Image Text:At an output level of 32,000 units, the degree of operating leverage is 2.10. If output increases to 51,200 units, what will the percentage change in operating cash flow be? a. 110% b. 122% c. 126% d. 125%
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