A project has the following estimated data: price = $55 per unit; variable costs = $45 per unit; fixed costs = $50,000; required return = 8 percent; initial investment = $500,000; life = five years with no salvage value (straight line depreciation). Taxes are 35 percent.

What is the degree of operating leverage assuming an Operating Cash Flow is $160,000 and that fixed costs are $50,000?