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At an out put level of 40,000 units, you calculate that the degree of operating leverage is 3.19. If output rises to 44,000 units, what
At an out put level of 40,000 units, you calculate that the degree of operating leverage is 3.19. If output rises to 44,000 units, what will the percentage change in operating cash flow be? Will the new level of operating leverage be higher or lower? Explain. Suppose fixed costs are $183,000.What is the operating cash flow at 38,000 units? The degree of operating leverage?
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