Question: Operating Cash Flow and Leverage [LO4] A proposed project has fixed costs of $83,000 per year. The operating cash flow at 9,100 units is $102,900.

Operating Cash Flow and Leverage [LO4] A proposed project has fixed

Operating Cash Flow and Leverage [LO4] 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? 13

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