Problem $11-13$ Operating Cash Flow and Leverage $[$LO$4]$

A proposed project has fixed costs of $$80,000$ per year. The operating cash flow at

$7,700$ units is $$93,600.$ Ignore the effect of taxes.

a$.$ What is the degree of operating leverage? $($Do not round intermediate calculations

and round your answer to $4$ decimal places, e$.$g$.,32\mathrm{.}1616.)$

b$.$ If units sold rise from $7,700$ to $8,200,$ what will be the new operating cash flow? $($Do

not round intermediate calculations and round your answer to $2$ decimal places,

e$.$g$.,32\mathrm{.}16.)$

c$.$ If units sold rise from $7,700$ to $8,200,$ what is the new degree of operating leverage?

$($Do not round intermediate calculations and round your answer to $4$ decimal

places, e$.$g$.,32\mathrm{.}1616.)$

a$.$ DOL

b$.$ New OCF

c$.$ New DOL