Degree of operating leverage

head-first company plans to sell 5,000 bicycle helmets at $75 each in the coming year.

unit variable cost is $50 (includes direct materials, direct labor, variable factory overhead, and variable selling expense).

total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense).

operating income at 5,000 units sold is $75,500.

calculate the degree of operating leverage. (round your answer to the nearest tenth.)

Rolston music company is considering the sale of a new sound board used in recording studios. the new board would sell for $27,200, and the company expects to sell 1,570 per year. the company currently sells 2,070 units of its existing model per year. if the new model is introduced, sales of the existing model will fall to 1,890 units per year. the old board retails for $23,100. variable costs are 57 percent of sales, depreciation on the equipment to produce the new board will be $1,520,000 per year, and fixed costs are $1,420,000 per year. if the tax rate is 35 percent, what is the annual ocf for the project?