7.A firm has annual fixed costs of $200,000, depreciation of 80,000 per year, and variable cost that is half of the price per unit of $3. If the firm sold 15% more of its products than its accounting break-even quantity, what will be the percentage increase in operating cash flow?

a. 25.5%

b. 52.5%

c. 42.5%

d. 35.5%

e. 60.5%