The new operating cash flows amount

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Reference no: EM131615872

Holy Night Music sells chorus sheet music. At 5,000 units, Holy Night's sales are $60,000 and varible costs are $35,000. Holy Night's fixed costs are $6,000. The Degree of Operating Leverage is 1.32. If the operating level changed to 7,000 units, the new operating cash flows amount is $ ________.

A. 38,200

B. 10,032

C. 8,968

D. 29,032

Reference no: EM131615872

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