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At an output level of 16,000 units, you have calculated that the degree of operating leverage is 2.55. The operating cash flow is $30,400 in

At an output level of 16,000 units, you have calculated that the degree of operating leverage is 2.55. The operating cash flow is $30,400 in this case.

a. Ignoring the effect of taxes, what are fixed costs?

b. What will the operating cash flow be if output rises to 17,500 units?

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