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[solution]: 11. Calculating Operating Leverage At an output level of 73,000 units, you calculate that the...


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11.        Calculating Operating Leverage   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. 12.        Leverage   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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