At an output level of 40,000 units, you calculate that the degree of operating leverage is 2.25. If output rises to 58,000 units, what will the percentage change in operating cash flow be?

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter11: Capital Budgeting Decisions
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At an output level of 40,000 units, you calculate that the degree of operating
leverage is 2.25. If output rises to 58,000 units, what will the percentage
change in operating cash flow be?
Transcribed Image Text:At an output level of 40,000 units, you calculate that the degree of operating leverage is 2.25. If output rises to 58,000 units, what will the percentage change in operating cash flow be?
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