3. Degree of Operating Leverage (3 points) A project has a fixed costs of $2,500 and variable cost per unit of $10.15. The depreciation expense is $1,100. The operating cash flow is $6,400. What is the degree of operating leverage? Show all work as follows: Identify: FC = Fixed Cost OCF = Operating Cash Flow Then compute the degree of operating leverage (DOL). DOL= 1 + (FC/OCF)