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At an output level of 50,000 units, you calculate that the degree of operating leverage is 3.50. Suppose fixed costs are $290,000.
Question a. What is the operating cash flow at 44,000 units? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Question b. What is the new degree of operating leverage? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
Financial Statement Analysis and Preparation
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