29 A

B and C

At an output level of 13,000 units, you have calculated that the degree of operating leverage is 2.7. The operating cash flow is $16,900 in this case. a. Ignoring the effect of taxes, what are fixed costs? Fixed costs b. What will the operating cash flow be if output rises to 15,500 units? OCF at 15,500 units c. What will the operating cash flow be if output falls to 11,500 units? OCF at 11,500 units