Delta Devices has a degree of operating leverage (DOL) of 2.10 at an output level of 30,000 units. If the output increases to 39,000 units, what will be the percentage change in operating cash flow? A. 63.00% B. 27.30% C. 54.60% D. 45.00% E. 72.30%
Delta Devices has a degree of operating leverage (DOL) of 2.10 at an output level of 30,000 units. If the output increases to 39,000 units, what will be the percentage change in operating cash flow? A. 63.00% B. 27.30% C. 54.60% D. 45.00% E. 72.30%
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...
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Transcribed Image Text:Delta Devices has a degree of operating leverage (DOL) of
2.10 at an output level of 30,000 units. If the output
increases to 39,000 units, what will be the percentage
change in operating cash flow?
A. 63.00%
B. 27.30%
C. 54.60%
D. 45.00%
E. 72.30%
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