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%
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%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Financial Accounting
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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