30. ABC Industries is analyzing a new project. The data they have gathered to date is as follows:

Lower Bound Expected Value Upper Bound

Sales quantity 9500 10000 10500

Sales price per unit $9.75 $10.00 $10.25

Variable cost per unit $4.80 $5.20 $5.60

Fixed cost $15,000.00 $18,000.00 $21,000.00

Initial requirement for equipment: $120,000

Depreciation: Straight-line to zero over the four-year life of the project with no salvage value.

Required rate of return: 15%

Marginal tax rate: 35%

What is the degree of operating leverage under the worst-case scenario?

explanation plz