Operating Cash Flow and Leverage Bellstar manufacturing is planning a restructuring of operations.

The company has fixed costs of £320,000 per year. The operating cash flow at 20,000 units is £400,000. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rise from 20,000 to 25,000 as a result of the restructuring, what will be the increase in operating cash flow? What is the new degree of operating leverage?