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At an output level of 9,000 units, you have calculated that the degree of operating leverage...

At an output level of 9,000 units, you have calculated that the degree of operating leverage is 1.3. The operating cash flow is $15,300 in this case.

a. Ignoring the effect of taxes, what are fixed costs?

b. What will the operating cash flow be if output rises to 10,500 units?

c. What will the operating cash flow be if output falls to 7,000 units?

Expert Solution

a. Fixed Cost

b. Operating cash flow if output rises to 10500 unit

c. operating cash flow be if output falls to 7,000 units

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jeff jeffy answered 3 months ago

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At an output level of 9,000 units, you have calculated that the degree of operating leverage...

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