Question: A B E F G 3 A proposed project has fixed costs of $83,000 per year. The operating cash flow at 9,100 units is $102,900.

A B E F G 3 A proposed project has fixed costs of $83,000 per year. The operating cash flow at 9,100 units is $102,900. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rise from 9,100 to 9,500, what will be the increase in operating cash flow? What is the new degree of operating leverage? 4 5 6 7 Fixed costs Units sold OCF New units sold 8 00 83,000 9.100 102 900 9.500 9 10 11 12 Complete the following analysis. Do not hard code values in your calculations, 19 14 Original DOL 15 16 Percentage change in quantity 17 18 Percentage change in OCF 19 20 New OCF 21 22 New DOL

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