Financial Accounting: At an output level of 53,000 units, you calculate that the degree of operating leverage is 1.75. If output rises to 82,420 units, what will the percentage change in operating cash flow be?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter2: Financial Statements, Cash Flow, And Taxes
Section2.8: Performance Evaluation
Problem 1ST
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Financial accounting

Financial Accounting: At an output level of
53,000 units, you calculate that the degree
of operating leverage is 1.75. If output rises
to 82,420 units, what will the percentage
change in operating cash flow be?
Transcribed Image Text:Financial Accounting: At an output level of 53,000 units, you calculate that the degree of operating leverage is 1.75. If output rises to 82,420 units, what will the percentage change in operating cash flow be?
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