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A proposed project has fixed costs of $ 4 5 , 0 0 0 per year. The operating cash flow at 7 , 0 0

A proposed project has fixed costs of $45,000 per year. The operating cash flow at 7,000 units is $88,000.
a. Ignoring the effect of taxes, what is the degree of operating leverage?
b. If units sold rise from 7,000 to 7,200, what will be the increase in operating cash flow?

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