Multiple Choice
Amy is in charge of a project that has a degree of operating leverage of 3.2. What will happen to the operating cash flows if Amy increases the number of units sold by 2 percent?
A) Decrease by 1.6 percent.
B) Decrease by 6.4 percent.
C) Increase by 1.6 percent.
D) Increase by 4.8 percent.
E) Increase by 6.4 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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