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At an output level of 16,500 units, you have calculated that the degree of operating leverage is 2.80. The operating cash flow is $63,500 in this case. Ignoring the effect of taxes, what are fixed costs?
Fixed costs $
What will the operating cash flow be if output rises to 17,500 units? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Operating cash flow $
What will the operating cash flow be if output falls to 15,500 units? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
References
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