- Consider a four-year project with the following information initial fixed asset investment = $620,000; straight-line depreciation to zero over the four-year life; zero salvage value, price = $50; variable costs = $38, fixed costs = $295,000, quantity sold 118,000 units, tax rate = 22 percent. a. What is the degree of operating leverage at the given level of output? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g. 32.1616.) b. What is the degree of operating leverage at the accounting break-even level of output? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) a. Degree of operating leverage b. Degree of operating leverage