Afirm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. if the firm's cost and revenue curves are linear and output is equal to 500 units, what is the firm's degree of operating leverage?

a. 5
b. 4
c. 3
d. none of the above is correct.

Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $