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C3 fo At an output level of 53,000 units, you calculate that the degree of operating A B E D F G H 1 J

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C3 fo At an output level of 53,000 units, you calculate that the degree of operating A B E D F G H 1 J At an output level of 53,000 units, you calculate that the degree of operating leverage is 3.21. If output rises to 57,000 units, what will the percentage change in operating cash flow be? Suppose fixed costs are $175,000. What is the operating cash flow at 46,000 units? The degree of operating leverage? 4 5 6 7 8 Initial output level DOL New output level Fixed costs Units 53,000 3.21 57,000 175,000 46,000 9 $ $ 10 11 12 A B D E F G H J 12 13 Complete the following analysis. Do not hard code values in your calculations. 14 15 OCF 16 17 Percentage change in quantity 18 19 Percentage change in OCF 20 21 New OCF 22 23 New DOL 24 25 26 27

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