General Accounting question please solve At an output level of 48,000 units, youcalculate that the degree of operatingleverage is 1.60. If output rises to 73,920units, what will the percentage change inoperating cash flow be?a. 86.40%b. 56.10%c. 90.72%d. 88.99%e. 82.08%

Step 1: Define Operating LeverageLeverage measures the change in the earning capacity of business…

Answered: At an output level of 48,000 units, you…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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%