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You manufacture face masks. Sales are projected at 15.500 face masks per year over the next four years. It will cost you $44.000 to install

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You manufacture face masks. Sales are projected at 15.500 face masks per year over the next four years. It will cost you $44.000 to install the equipment necessary to start production, you'll depreciate this cost straight-line to zero over the project's life. You estimate that in four years, this equipment can be salvaged for $32.000. Your fixed production costs will be $65.000 per year. price per unit is $7, and your variable production costs should be $1.50 per unit ($0.50 per unit in variable material costs and $1 per unit in variable labor expense). You also need an initial investment in net working capital of $90,000. You require a return of 9 percent on your investment. Ignore taxes (tax rate is 0%), Quantity sold is projected as 15,500. If the quantity sold increases by 20%, operating cash flow (OCF) increases by 84.20%. What is the degree of operating leverage at this quantity level

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