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The pretax operating cash flow of Oriole Motors declined so much during the recession of 2 0 0 8 and 2 0 0 9 that
The pretax operating cash flow of Oriole Motors declined so much during the recession of and that the company almost defaulted on its debt. The owner of the company wants to change the cost structure of his business so that this does not happen again.
He has been able to reduce fixed costs from $ to $ and, in doing so reduce the Cash Flow DOL for Oriole Motors from to with sales of $ and pretax operating cash flow of $ If sales declined by percent from this level, how much more pretax operating cash flow would Oriole Motors have with the new cost structure than under the old?
Oriole Motors would have $
more pretax operating cash flow with the new cost structure than under the ol
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