Question: Saved Problem 11-13 Operating Cash Flow and Leverage [LO4] A proposed project has fixed costs of $90,000 per year. The operating cash flow at 4,700

Saved Problem 11-13 Operating Cash Flow and Leverage [LO4] A proposed project has fixed costs of $90,000 per year. The operating cash flow at 4,700 units is $96,000. 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., 32.1616.) b. If units sold rise from 4,700 to 5,200, what will be the new operating cash flow? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. If units sold rise from 4,700 to 5,200, what is the new degree of operating leverage? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) a. DOL b. New OCF c. New DOL

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