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3. Degree of Operating Leverage A project has a fixed costs of $2,500 and variable cost per unit of $10.15. The depreciation expense is $1,100.

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3. Degree of Operating Leverage 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? DOL= 1 + (FC/OCF) Show all work as follows: Identify: Fixed Cost (FC) Operating Cash Flow (OCF) Then compute the degree of operating leverage (DOL)

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