7. Use the information below and the degree of operating leverage formulas to answer the following questions:

Fixed Costs 400,000

Operating Cash Flow 350,000

Quantity expected 11,000 units

Quantity sold 14,000 units

What is the degree of operating leverage? ____________________

What is the percent change in quantity (between expected and sold)? _______________

What is the percent change in Operating Cash Flow at the higher figure? _________________

Answer is 2.14, 27%, 58%. Need to know how to find these answers.