At an output level of 78,000 units, you calculate that the degree of operating leverage is 3.8. The output lowers to 71,000 units. What will the percentage change in operating cash flow be? (Do not round intermediate calculations. Enter answer as a percent rounded to 2 decimal places.)

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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Can you please solve this accounting problem without use Ai?

At an output level of 78,000 units, you calculate that
the degree of operating leverage is 3.8. The output
lowers to 71,000 units.
What will the percentage change in operating cash
flow be? (Do not round intermediate calculations.
Enter answer as a percent rounded to 2 decimal
places.)
Transcribed Image Text:At an output level of 78,000 units, you calculate that the degree of operating leverage is 3.8. The output lowers to 71,000 units. What will the percentage change in operating cash flow be? (Do not round intermediate calculations. Enter answer as a percent rounded to 2 decimal places.)
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