At an output level of 17,500 units, you have calculated that the degree of operating leverage is

Question:

At an output level of 17,500 units, you have calculated that the degree of operating leverage is 3.26. The operating cash flow is $78,000 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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