Financial accounting Financial Accounting: At an output level of53,000 units, you calculate that the degreeof operating leverage is 1.75. If output risesto 82,420 units, what will the percentagechange in operating cash flow be?

Explanation of Degree of Operating Leverage (DOL):The degree of operating leverage (DOL) measures…

Answered: Financial Accounting: At an output…

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: 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?