Problem:
At an output level of 50,000 units, you calculate that the degree of operating leverage is 1.8.
Required:
Question: What will be the percentage change in operating cash flow if the new output level is 54,500 units?
- 5.00 percent
- 6.17 percent
- 16.20 percent
- 17.43 percent
- 20.00 percent
Note: Please show the work not just the answer.