Given the following base case scenario:

BASE CASE

sales $5,000,000

Variable costs $1,600,000

Cash fixed costs $1,800,000

Depreciation Expense $600,000

Interest Expense $400,000

1. Calculate the OCF. (0.50 point)

2. Calculate the no-tax cash income. (0,50 point)

3. Without using any equations from the book, calculate DOL and DFL implied in these numbers. (2 points)