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Calculating Operating Leverage [ LO 4 ] At an output level of 7 3 , 0 0 0 units, you calculate that the degree of

Calculating Operating Leverage [LO4] At an output level of 73,000 units, you
calculate that the degree of operating leverage is 2.90. If output rises to 78,000
units, what will the percentage change in operating cash flow be? Will the new level
of operating leverage be higher or lower? Explain.
Leverage [LO4] In the previous problem, suppose fixed costs are $150,000. What
is the operating cash flow at 67,000 units? The degree of operating leverage?
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