Office Supplies: The Office Supplies account started the year with a $4,000 debit balance. During the year, the company purchased supplies for $13,400, which added to the Office Supplies Account. The inventory of supplies available at the end of the year totaled $2,554.

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?