Price=50 per unit

Variable cost=30 per unit

Fixed cost=22000

Required return=10%

Initial investment=32000

Life of project=4 years

salvage value=0

1)Ignoring the effect of the taxes, what is the financial break-even quantity?

2)What is the degree of operating leverage at the financial break-even quantity?

3)If sales increase by 5%, how much will the operating cash flow be?