Q10) At an output level of 12,000 units, you have calculated that the degree of operating leverage is 2.7. The operating cash flow is $16,800 in this case.

A) Ignoring the effect of taxes, what are fixed costs? (Potential Answers: $28,560, $30,860, $32,260, $27,910, $35,360)

B) What will the operating cash flow be if output rises to 14,500 units? (Potential Answers: $26,250, $28,850, $30,550, $25,300, $34,050)

C) What will the operating cash flow be if output falls to 10,000 units? (Potential Answers: $9,240, $11,740, $13,840, $8,390, $17,140)