Steele Insulators is analyzing a new type of insulation for interior walls. Management has compiled the

following information to determine whether or not this new insulation should be manufactured. The

insulation project has an initial fixed asset requirement of $$1\mathrm{.}3$ million, which would be depreciated straight$-$

line to zero over the $10-$year life of the project. Projected total contribution margin is $$1,121,000$ and the

anticipated annual EBIT is $$222,000.$ Assume that the corporate tax rate $(\backslash$tau $)$ is $50\%$ A$)$What is the degree of operating leverage for this project? B$)$ If sales fall by $5\%$ what is the impact on OCF?