In the previous problem, what will be the new degree of operating leverage in each case? In

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In the previous problem, what will be the new degree of operating leverage in each case?

In previous problem,

At an output level of 17,500 units, you have calculated that the degree of operating leverage is 3.42. The operating cash flow is $64,000 in this case. Ignoring the effect of taxes, what are fixed costs? What will the operating cash flow be if output rises to 18,500 units? If output falls to 16,500 units?




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Fundamentals of Corporate Finance

ISBN: 978-0077861704

11th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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