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(Solved): Widget Inc. produced 50,000 units in year 1 and had operating cash flow of $600,000 and a sales pric ...



Widget Inc. produced 50,000 units in year 1 and had operating cash flow of $600,000 and a sales price per unit of $51.00. In year 2 unit, sales are expected to increase to 55,000. The company has a degree of operating leverage of 1.75. What will the operating cash flow be in year 2?


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Given information:

Year 1:
Units produced: 50,000
Operating cash flow: $600,000
Sales price per unit: $5...
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