A proposed project has fixed costs of $40,000 per year. The operating cash flow at 14,000 units is $78,000.

Required:

(a) Ignoring the effect of taxes, what is the degree of operating leverage? (Do not round your intermediate calculations.)

(b) If units sold rise from 14,000 to 14,400, what will be the increase in operating cash flow? (Do not round your intermediate calculations.)

(c) What is the new degree of operating leverage? (Do not round your intermediate calculations.)

Required (a)lgnoring the effect of taxes, what is the degree of operating leverage? (Do not round your intermediate calculations.) (Click to select) 1.6490 1.2254 n 14,000 to 14,400, what will be the increase in operating cash flow? (Do not round 1.5128 calculations.) 1.8003 2.9500