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At an output level of 8,000 units, you have calculated that the degree of operating...

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Finance

At an output level of 8,000 units, you have calculated that the degree of operating leverage is 1.8. The operating cash flow is $9,600 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 9,500 units?

c. What will the operating cash flow be if output falls to 6,000 units?

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