Will the new level of operating leverage be higher or lower

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At an output level of 62,000 units, you calculate that the degree of operating leverage is 3.7. The output rises to 67,000 units.

What will the percentage change in operating cash flow be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Percentage change in OCF %

Will the new level of operating leverage be higher or lower?

Higher

Lower

Reference no: EM131444422

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