Horizon Tech Inc. has an output level of 90,000 units, with a degree of operating leverage (DOL) of 4.2. The output decreases to 83,500 units. What will be the percentage change in operating cash flow?
Horizon Tech Inc. has an output level of 90,000 units, with a degree of operating leverage (DOL) of 4.2. The output decreases to 83,500 units. What will be the percentage change in operating cash flow?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What will be the percentage change in operating
Transcribed Image Text:Horizon Tech Inc. has an output level of 90,000 units, with a degree
of operating leverage (DOL) of 4.2. The output decreases to 83,500
units.
What will be the percentage change in operating cash flow?
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