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A firm has annual fixed costs of $200,000, depreciation of 80,000 per year, and variable cost that is half of the price per unit of

A firm has annual fixed costs of $200,000, depreciation of 80,000 per year, and variable cost that is half of the price per unit of $3. If the firm sold 15% more of its products than its accounting break-even quantity, what will be the percentage increase in operating cash flow?

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  • 35.5%
  • 25.5%
  • 60.5%
  • 52.5%
  • 42.5%

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