The operating leverage of Phoenix Innovations Inc. is 1.25. If sales increase by 7.2%, by what percentage will operating cash flows change? A) 8.10% increase B) 9.00% increase C) 7.50% increase

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter13: Capital Structure Concepts
Section: Chapter Questions
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What percentage will opereting cash flow change? Accounting

The operating leverage of Phoenix Innovations Inc. is 1.25. If sales increase by 7.2%,
by what percentage will operating cash flows change?
A) 8.10% increase
B) 9.00% increase
C) 7.50% increase
Transcribed Image Text:The operating leverage of Phoenix Innovations Inc. is 1.25. If sales increase by 7.2%, by what percentage will operating cash flows change? A) 8.10% increase B) 9.00% increase C) 7.50% increase
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