Question
At an output level of 9,000 units, you have calculated that the degree of operating leverage is 3.3. The operating cash flow is $20,700 in
| At an output level of 9,000 units, you have calculated that the degree of operating leverage is 3.3. The operating cash flow is $20,700 in this case. |
| a. Ignoring the effect of taxes, what are fixed costs? |
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| b. What will the operating cash flow be if output rises to 10,000 units? |
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| c. What will the operating cash flow be if output falls to 6,500 units? |
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Forecasting Principles And Practice
Authors: Rob J Hyndman, George Athanasopoulos
3rd Edition
0987507133, 978-0987507136
