At an output level of 78,000 units, you calculate that the degree of operating leverage is 3.8. The output rises to 83,000 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
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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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At an output level of 78,000 units, you calculate that the
degree of operating leverage is 3.8. The output rises to
83,000 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 rises to 83,000 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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