At an output level of 84,000 units, you calculate that the degree of operating leverage is 1.80. Suppose fixed costs are $180,000. a. What is the operating cash flow at 78,000 units? b. What is the degree of operating leverage?
At an output level of 84,000 units, you calculate that the degree of operating leverage is 1.80. Suppose fixed costs are $180,000. a. What is the operating cash flow at 78,000 units? b. What is the degree of operating leverage?
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Accounting provide a. b calculation

Transcribed Image Text:At an output level of 84,000 units, you
calculate that the degree of operating
leverage is 1.80. Suppose fixed costs are
$180,000.
a. What is the operating cash flow at 78,000
units?
b. What is the degree of operating leverage?
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