Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE ANSWER IN EXCEL FORM WITH EXACT CELL FORMULAS USED TO SOLVE EACH OF THE YELLOW BOXES. The % change in quantity is wrong. It

PLEASE ANSWER IN EXCEL FORM WITH EXACT CELL FORMULAS USED TO SOLVE EACH OF THE YELLOW BOXES.

The % change in quantity is wrong. It says formula isn't right for (new output level-initial output level)/initial output level.

image text in transcribedimage text in transcribed

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? 53,000 3.21 Initial output level DOL New output level Fixed costs Units 57,000 175,000 46,000 Complete the following analysis. Do not hard code values in your calculations. OCF $ 79,185.52 Percentage change in quantity Percentage change in OCF New OCF ... Sheet1 100% Hint READY 0 0 0 -- H + Attempt(s) 1/3 Step: The percentage change in quantity is the new quantity minus the original quantity divided by the original quantity. 21 New OCF 22 23 New DOL 24 25 26

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions