A proposed project has fixed costs of $108,000 per year. The operating cash flow at 6,800 units is $96,600. Ignoring the effect of taxes, what is the degree of operating leverage? (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.)

1

Degree of operating leverage

If units sold rise from 6,800 to 7,300, what will be the new operating cash flow? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

2- Operating cash flow

$

What is the new degree of operating leverage? (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.)

3

New DOL