A proposed project has fixed costs of $30,000 per year. The operating cash flow at 7,000 units

Question:

A proposed project has fixed costs of $30,000 per year. The operating cash flow at 7,000 units is $63,000. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rises from 7,000 to 7,300, what will be the increase in operating cash flow? What is the new degree of operating leverage?

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