7 What is the degree of operating leverage? Sales = 100,000 units; price = $50; variable cost = $30; fixed costs = $950,000; depreciation = $250,000; tax rate = 34%. A) 1.06 B) 1.22 C) 1.37 D) 1.63 E) 2.22 Ans:

I am trying to find the degree of operating leverage. The formula is: 1 + Fixed costs/ Operating Cash Flow

The Operating Cash Flow formula is: (Sales - Variable Costs)(1-tax rate) + Depreciation(Tax rate)

For some reason my number is not coming out to the answer. (The answer is E)