What is the expected change in the operating cash flow

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Problem 1: Webster and Words manage a product with a 3,5 degree of operating leverage. Sales of the product are expected to decline by 15 per cent next year. What is the expected change in the operating cash flow for this product for next year?

A. increase by 23,3 per cent

B. increase by 52,5 per cent

C. decrease by 4,3 per cent

D. decrease by 23,3 per cent

E. decrease by 52,5 per cent

Reference no: EM132656410

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