Which of the following will increase BOTH the operating leverage and the financial leverage? Assume operating cash flow OCF=(P-c)×Q-FC, where P is the price, c is the variable cost, Q is the quantity of goods sold, and FC is the fixed costs. A. Holding P,c, and FC constant, increase Q B. Holding P,c, and Q constant, increase FC C. Holding sales (i.e.,P×Q), c, and FC constant, increase P D. None of the above

Which of the following will increase BOTH the operating leverage and the financial leverage? Assume operating cash flow OCF=(P-c)×Q-FC, where P is the price, c is the variable cost, Q is the quantity of goods sold, and FC is the fixed costs. A. Holding P,c, and FC constant, increase Q B. Holding P,c, and Q constant, increase FC C. Holding sales (i.e.,P×Q), c, and FC constant, increase P D. None of the above

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 15MC: Which of the following is a stronger indicator of cash flow flexibility? A. cash flow from operating...

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