At an output level of 40,000 units, you calculate that the degree of operating leverage is 2.70. If output rises to 46,800 units, what will the percentage change in operating cash flow be? (Do not round your intermediate calculations.) Multiple Choice 45.90% 39.23% 48.20%

At an output level of 40,000 units, you calculate that the degree of operating leverage is 2.70. If output rises to 46,800 units, what will the percentage change in operating cash flow be? (Do not round your intermediate calculations.) Multiple Choice 45.90% 39.23% 48.20%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

At an output level of 40,000 units, you calculate that the degree of operating leverage is
2.70. If output rises to 46,800 units, what will the percentage change in operating cash
flow be? (Do not round your intermediate calculations.)
Multiple Choice
45.90%
39.23%
48.20%

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