1. an output level of 22500 units you calculate that the degree of operating leverage is 1.37 !what will be the change in operating cash flow if the new output level is 25000 units 2. A good coffee shop has computed its fixed costs to be $199,530 for an annual sale of 739,000 cups the sales price is $9.99 per cup while the variable cost per cup is $.12 how many cups of coffee must it sell to break even on a cash basis ?

1. an output level of 22500 units you calculate that the degree of operating leverage is 1.37 !what will be the change in operating cash flow if the new output level is 25000 units 2. A good coffee shop has computed its fixed costs to be $199,530 for an annual sale of 739,000 cups the sales price is $9.99 per cup while the variable cost per cup is $.12 how many cups of coffee must it sell to break even on a cash basis ?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 11P

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