In the previous problem, suppose fixed costs are $150,000. What is the operating cash flow at 35,000 units? The degree of operating leverage?

Data from Problem 11

At an output level of 30,000 units, you calculate that the degree of operating leverage is 3. If output rises to 36,000 units, what will the percentage change in operating cash flow be? Will the new level of operating leverage be higher or lower? Explain.