At an Output Level of 22,500 Units, You Calculate That

question 99

Multiple Choice

At an output level of 22,500 units, you calculate that the degree of operating leverage is 1.37. What will be the percentage change in operating cash flow if the new output level is 25,000 units?

• A) 17.78 percent
• B) 16.17 percent
• C) 15.22 percent
• D) 17.73 percent
• E) 15.08 percent

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