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Problem:

At an output level of 50,000 units, you calculate that the degree of operating leverage is 1.8.

Required:

Question: What will be the percentage change in operating cash flow if the new output level is 54,500 units?

  • 5.00 percent
  • 6.17 percent
  • 16.20 percent
  • 17.43 percent
  • 20.00 percent

Note: Be sure to show how you arrived at your answer.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91173630

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