At an output level of 48,000 units, you calculate that the degree of operating leverage is 1.60. If output rises to 73,920 units, what will the percentage change in operating cash flow be? a. 86.40% b. 56.10% c. 90.72% d. 88.99% e. 82.08%

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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At an output level of 48,000 units, you
calculate that the degree of operating
leverage is 1.60. If output rises to 73,920
units, what will the percentage change in
operating cash flow be?
a. 86.40%
b. 56.10%
c. 90.72%
d. 88.99%
e. 82.08%
Transcribed Image Text:At an output level of 48,000 units, you calculate that the degree of operating leverage is 1.60. If output rises to 73,920 units, what will the percentage change in operating cash flow be? a. 86.40% b. 56.10% c. 90.72% d. 88.99% e. 82.08%
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