If we consider the effect of taxes, then the degree of operating leverage can be written as: DOL=1+(FC(1Td)TCD)OCF Consider a project to supply Detroit with 26,000 tons of machine screws annually for automobile production. You will need an initial $5,900.000 investment in threading equipment to get the project started; the project will last for 6 years. The accounting department estimates that annual fixed costs will be $1,425,000 and that variable costs should be $270 per ton; accounting will depreclate the initial fixed asset investment straight-line to zero over the 6-year project life. It aiso estimates a salvage value of $800,000 after dismanting costs. The marketing department estimates that the autpmakers will let the contract at a seling price of $386 per ton. The engineering department estimates you will need an initiat net working capital investment of $570.000. You require a return of 9 percent and foce a tax rate of 21. a. What is the percentage change in OCF if the units sold changes to 27,000? (Do not round intermediate calculations and enter your answer as a percent rounded to 4 decimal places, e.9. 32.1616.) b. What is the DOL at the base-case level of output? (Do not round intermediate calculations and round your answer to 4 decimal places, e.9., 32.1616.)