At an output level of 86,000 units, you calculate that the degree of operating leverage is 3.4. The output rises to 93,000 units. What will the percentage change in operating cash flow be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage change in OCF % Will the new level of operating leverage be higher or lower?
At an output level of 86,000 units, you calculate that the degree of operating leverage is 3.4. The output rises to 93,000 units. What will the percentage change in operating cash flow be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage change in OCF % Will the new level of operating leverage be higher or lower?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:At an output level of 86,000 units, you calculate that the degree of operating
leverage is 3.4. The output rises to 93,000 units.
What will the percentage change in operating cash flow be? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
Percentage change in OCF
%
Will the new leve
of operating leverage be higher or lower?
O Higher
O Lower
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